A) Mexico's expected annual rate of inflation is equal to 6.35% per year, while the expected annual inflation rate for the U.S. is 2%. If the current spot rate is Peso 19.08/$, what is the expected spot rate in five years?

a. Peso 18.30/$

b. Peso 15.48/$

c. Peso 19.89/$

d. Peso 23.51/$

B) The nominal short-term interest rate in Thailand is 1.8%, while it is 3% in Malaysia. If these countries have the same real interest rate at 1.3%. According to the Fisher Effect, what are their inflation rates, respectively?

a. 1.6782% in Thailand, 0.4936% in Malaysia

b. 0.4936% in Thailand, 1.6782% in Malaysia

c. 3.1% in Thailand, 4.3% in Malaysia

d. 4.3% in Thailand, 3.1% in Malaysia

C)If the Peso/ spot rate is Peso 25.22/ and the interest rates in Mexico and UK are 6.35% and 3%, respectively, what is the expected future spot rate five years from now? Does Peso appreciate or depreciate? Group of answer choices

a. Peso26.04 /, Peso depreciates against Pound

b. Peso29.60 /, Peso depreciates against Pound

c. Peso24.43 /, Peso appreciates against Pound

d. Peso21.49 /, Peso appreciates against Pound