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9. Suppose that there are no restrictions on international asset transactions, and people are risk neutral. For each of the following cases, if the values
9. Suppose that there are no restrictions on international asset transactions, and people are risk neutral. For each of the following cases, if the values for domestic and foreign interest rates and the spot exchange rate are as given, determine what the expected next period future exchange rate Etet+1 is:
a. r* = 18%, r = 4%, and et = $1.00.
b. r* = 7%, r = 13%, and et = $2.00.
c. r* = 10%, r = 10%, and et = $0.50.
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