Current spot exchange rates are USD/NZD = 0.60 and USD/GBP = 1.44. Current 1-year, risk-free, zero-coupon rates are i(USD) = 1%, i(NZD) = 3%, i(GBP)= 2%.

a. What is the no-arbitrage NZD/GBP exchange rate? (To 3 decimal places.)

b. What is the USD/GBP 1-year forward rate? (To 3 decimal places.)

c. Under the unbiasedness hypothesis, what is the expected USD/NZD exchange rate in 1 year? (To 3 decimal places.)

d. If the NZD depreciates by 10% over the next year, what will be the USD/NZD exchange rate at the end of the year? (To 3 decimal places.)

e. If inflation rates over the next year are ?(USD) = 0%, ?(GBP) = 4%, and the GBP appreciates by 8% in real terms, what must the nominal USD/GBP exchange rate be at the end of the year? (To 3 decimal places.)

f. If the New Zealand stock market generates a return in NZD of 10% over the next year, what will the USD return be on this market if exchange rate risk is fully hedged in the forward market? (In percent. To 3 decimal places.)

g. If inflation rates over the next year are ?(USD) = 0%, ?(GBP) = 4%, PPP holds, and the UK stock market generates a return in GBP of 10% over the next year, what is the real return on this market from a USD perspective? (In percent. To 3 decimal places.)

h. In the standard forward premium regression run on annual data (s1+1 = a + bfp, + at"), if a = 0 and b = -1, then What is the expected USD/NZD exchange rate at the end of the year? (To 3 decimal places.)