Correct and explain Question $6$:

a$)$ If expected inflation in Denmark and the US is $3\%$ and $2\%$ respectively, which international parity relationship would give you the expected spot rate between the USD and Danish Krone? Describe the relationship with the appropriate formula

b$)$ If the USD$/$Danish Krone $($DKK$)$ spot is $6\mathrm{.}6448,$ then, according to the relationship expressed in part a$),$ compute the expected future exchange rate?

Question $7$:

If the interest rate in the U$.$S$.$ is i $$=5$ percent for the next year and interest rate in the U$.$K$.$ is i $=8$ percent for the next year, uncovered IRP suggests that

the dollar is expected to depreciate against the pound by about $3$ percent. the pound is expected to appreciate against the dollar by about $3$ percent. the pound is expected to depreciate against the dollar by about $3$ percent. the dollar is expected to appreciate against the pound by about $3$ percent.