a. Suppose the interest rate in Taiwan is 4% and forecast Taiwanese inflation is 0.5%. At the same time, Panamanian interest rate is 1.5% and forecast Panamanian inflation is 2%. Based on these figures, what were the real interest rates in Taiwan and Panama? b. If the 15-day forward rate is Taiwan $ 2.5/balboa and the current spot rate is Taiwan $ 2.22/balboa, is there arbitrage opportunity (in other words, does the interest rate parity hold)? [Hint: use the quick method; home is Taiwan)