$.($CFA question$)$ Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity $($PPP$)$ and the International Fisher Effect $($IFE$)$ to forecast spot exchange rates. Omni gathers the financial information as follows:Base price level$100$Current U$.$S$.$ price level$105$Current South African price level$111$Base rand spot exchange rate$$ $$0\mathrm{.}175$Current rand spot exchange rate$$ $$0\mathrm{.}158$Expected annual U$.$S$.$ inflation$7\%$Expected annual South African inflation$5\%$Expected U$.$S$.$ one$-$year interest rate$10\%$Expected South African one$-$year interest rate$8\%$Calculate the following exchange rates $($ZAR and USD refer to the South African rand and U$.$S$.$ dollar, respectively$).*$ The current ZAR spot rate in USD that would have been forecast by PPP$.*$ Using the IFE, the expected ZAR spot rate in USD one year from now.$*$ Using PPP$,$ the expected ZAR spot rate in USD four years from now.