B. Assume that the one-year interest rate in New Zealand is 2 percent. The one-year interest rate in the US is 3 percent. The spot rate of the New Zealand dollar is $0.50. The one-year forward rate is $0.52. Does interest rate parity exist? Is covered interest arbitrage feasible for US investors? For New Zealand investors? (15 points) C. 1) If the inflation rates in the British pound and the US $ are 4% and 1% respectively, whits the exchange rate is 1 pound exchanges for $2, what will the future spot rate be? 2) What is the meaning of the above in the coatext of PPP? (15 points) D. We have the following information. The spot exchange rates now and expected in a year from now between the South African rand and the Mali West African franc (CFA) is . 02 and .025S.A. rand per CFA. The forward rate between the two currencies is 225S.A rand per CFA. How would we speculate in the spot markets and in the forward one to attain a profit? Presuppose, we have the equivalent of 10 million rand ( 15 points)