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e) (5 points) Find future spot rate assuming the inflation rates will hold over the next several years. Currency Current Spot RPPP Bath E(Spot in

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e) (5 points) Find future spot rate assuming the inflation rates will hold over the next several years. Currency Current Spot RPPP Bath E(Spot in 4 Year) Thai Bhat/s 26.0250 f) (5 points) Find future spot rate assuming that the interest rates do not change over the two-year horizon. Currency Current Spot IFE US $ E(Spot in 3 Year) Singapore $/$ 1.4200 2. (10 points) Swedish krona is quoted at 0.2074-80 in London. Pound is quoted at 5.0010-32 krona in Stockholm. Describe (which currency to buy/sell in which city for which price) and calculated max profitability or min loss rate. 3. (10 points) What is triangular arbitrage profit/loss from starting with $10 million. Swedish Krona per US$ US$ per Danish Krone Swedish Krona per Danish Krone 6.5500/6.5590 0.172265 / 0.172414 1.1310 / 1.1330 Page 1 of 2 703 words + 100% O Type here to search DE . q W 5 ENG 100% 11:31 AM 12/16/2020 e) (5 points) Find future spot rate assuming the inflation rates will hold over the next several years. Currency Current Spot RPPP Bath E(Spot in 4 Year) Thai Bhat/s 26.0250 f) (5 points) Find future spot rate assuming that the interest rates do not change over the two-year horizon. Currency Current Spot IFE US $ E(Spot in 3 Year) Singapore $/$ 1.4200 2. (10 points) Swedish krona is quoted at 0.2074-80 in London. Pound is quoted at 5.0010-32 krona in Stockholm. Describe (which currency to buy/sell in which city for which price) and calculated max profitability or min loss rate. 3. (10 points) What is triangular arbitrage profit/loss from starting with $10 million. Swedish Krona per US$ US$ per Danish Krone Swedish Krona per Danish Krone 6.5500/6.5590 0.172265 / 0.172414 1.1310 / 1.1330 Page 1 of 2 703 words + 100% O Type here to search DE . q W 5 ENG 100% 11:31 AM 12/16/2020

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