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)The Expected next year's forecast of Argentine Peso (ARS) based on international Fisher effect is:

2)The Expected next year's forecast of Argentine Peso (ARS) based on Purchasing Power Parity Hypothesis is:

a)Depreciation of ARS about 4.1 percent

b)Appreciation of ARS about 2 percent

c)Appreciation of ARS about 4.8 percent

d)Depreciation of ARS about 2.8 percent

e)Appreciation of ARS about 1.5 percent

f)Depreciation of ARS about 5.6 percent

g)Appreciation of ARS about 2.8 percent