| DEG,Annual Foreign E(SJ- Expected Exchange | huse. Annudal Inflation Rate Spot Rate in t Years in Rate in the United So= Current Spot Rate Country Inflation Rate in European Terms (Foreign currency per European Terms (Foreign States US dollar)currency per US dollar) 1 USD 0.8502 EURO Using the data above and textbook equation (18.3) E(S.)-So1 (hc- hus)l' and assuming the estimated inflation rate in Year 1 also holds for Years 2 and 3, please respond to the following: a) Based on relative purchasing power parity, estimate S, b) Based on relative purchasing power parity, estimate S2 a e