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6. Suppose that the Interest rate on dollar accounts is equal to 2% (1$ - 0.02), the Interest rate on Polish zloty accounts Is equal

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6. Suppose that the Interest rate on dollar accounts is equal to 2% (1$ - 0.02), the Interest rate on Polish zloty accounts Is equal to 4.5% (Izl = 0.045), and the expected exchange rate between the dollar and the zloty one year from now Is ee - 4 z1/$. Assume that the (uncovered) Interest parity holds. What would the spot rate, e, be If the expected exchange rate remains the same and the Interest rate on Polish assets declines to lzt - 0.02? (Answer In zt/$.)

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