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Could anyone please answer this question? I will give you thumb up! Thank you! 3. (15 points) Attached are the PNC exchange-rate forecasts: compute the

Could anyone please answer this question? I will give you thumb up! Thank you!

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3. (15 points) Attached are the PNC exchange-rate forecasts: compute the expected capital gain between September 2020 and December 2022 across the following currencies: Chinese yuan, Japanese yen, Euro, UK pound sterling. Are the expected capital gains the same across these currencies? Is there any evidence that Covid-19 has influenced these gains? If the interest rates are the same across countries, would you not expect for the expected capital gains to be the same across currencies?9 BASELINE EXCHANGE RATE FORECASTS, FOURTH QUARTER OF 2020 Dec-17 Dec-18 Dec-19 Jun-20 Sep-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Australian dollar USD per AUD Actual, 0.76 0.71 0.69 0.69 0.72 PNC Forecast, 0.73 0.73 0.74 0.74 0.75 Brazilian real BRL per USD month-avg 3.30 3.89 4.11 5.20 5.40 month-end 5.60 5.50 5.40 5.35 5.30 Canadian dollar CAD per USD 1.28 1.35 1.32 1.36 1.32 1.32 1.33 1.34 1.34 1.34 Swiss franc CHF per USD 0.99 0.99 0.98 0.95 0.92 0.91 0.92 0.92 0.92 0.92 Chinese yuan CNY per USD 6.59 6.89 7.01 7.08 6.81 6.80 6.77 6.75 6.75 6.75 Euro USD per EUR 1.18 1.14 1.11 1.13 1.18 1.18 1.18 1.19 1.19 1.20 UK pound sterling USD per GBP 1.34 1.27 1.31 1.25 1.29 1.30 1.31 1.31 1.31 1.31 Indian rupee INR per USD 64.2 70.6 71.2 75.8 73.5 73.7 73.9 74.0 74.1 74.2 Japanese yen JPY per USD 112.9 112.2 109.1 107.6 105.6 106.0 108.0 108.5 108.7 108.9 Korean won KRW per USD 1,085 1,122 1,174 1,207 1, 177 1, 182 1, 195 1, 198 1,200 1,202 Mexican peso MXN per USD 19.2 20.1 19.1 22.3 21.6 22.3 22.1 21.9 21.8 21.7 Norwegian krone NOK per USD 8.31 8.64 9.02 9.54 9.16 9.1 9.2 9.2 9.2 9.2 New Zealand dollar USD per NZD 0.70 0.68 0.66 0.64 0.67 0.67 0.68 0.68 0.69 0.69 Swedish krona SEK per USD 8.38 9.04 9.43 9.32 8.85 8.8 8.8 8.7 8.7 8.7 Broad dollar index Jan '06 = 100 110.8 116.2 116.0 120.0 116.7 117.2 117.3 117.0 116.9 116.7 DXY dollar index Mar '73 = 100 93.3 96.9 97.4 97.1 93.4 93.3 93.5 93.1 93.2 92.7 PNC

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