Current Spot Rate (Argentine Peso = ARS) ARS 14.16/$

3 month forward rate ARS 14.22/$

Annual US Interest Rate 1.5 percent

Annual Argentine Interest Rate 5.6 percent

Annual US inflation rate 2 percent

Annual Argentine Inflation rate 4.8 percent

1)Using the accurate approaches and based on the international fisher effect, the outright forecast value of the Argentine peso (ARS) is:

2)Using the accurate approaches, the outright forecast value ofthe Argentine Peso (ARS) on the basis of the Relative Purchasing Power Parity is:

3)Based on the theory of forward rate as an Unbiasedpredictor of the future spot rate, the outright forecast value of the Argentine Peso (ARS) for 3 months from today is:

a)14.73

b)14.55

c)14.16

d)14.84

e)14.22