B. The current Euro franc to U.S. dollar spot exchange rate is USD:Euro = 1.20. The expected German inflation over the coming year is 3% and the expected USA inflation rate is 2%. According to purchasing power parity, what is the expected value of the Euro to U.S. dollar spot exchange rate a year from now?

A. Suppose that there were some statistics about the Russian Rubble (RUB) and the ZAR. XAF 4% 5% ZAR 7% 4% Annual Inflation Interest Rate (1 Year) Spot Exchange Rate (ZAR:RUB) Expected Exchange Rate in 1 year (ZAR:RUB) 1 Year Forward Exchange Rate (ZAR:RUB) 4.80 ? Based on International Fisher Relation the PPP and the IRP linear approximations of international parity conditions replace the question marks with appropriate answers