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help!!!!!! Please answer the next 5 questions based on the following information. Please use the exact, not the approximate formula. Suppose the annual inflation rate

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Please answer the next 5 questions based on the following information. Please use the exact, not the approximate formula. Suppose the annual inflation rate in the US is expected to be 5.5 %, while it is expected to be 2.00 % in Japan. The current spot rate (on 1/1/10) for the Japanese Yen (JPY) is $0.01111 20. According to Purchasing Power Parity, expected percentage change in the value of the JPY during a one-year period should be: 3.43% -3.50% a. b. 96.68% d. 21. According to Purchasing Power Parity, the expected spot price for JPY on 1/1/11 should be: a. $0.01111 b. $0.01074 c. $0.01133 d. $0.01149 in "real" purchasing 22. If the spot rate of JPY is $0.01138 on 1/1/11, then the JPY experienced power. b. Loss c. No Change a. Gain 23. If the spot rate of JPY s0.01149 on 1/1/11, then the USD experienced in "real" purchasing power. a. Gain b. Loss c. No Change 24. Suppose the value of the JPY is $0.01175 on 1/1/11. The net cash flow of a US importer from Japan wil a. Increase b. Decrease dealer will f SF for the Ch crease, decreas ven a home ome currenc Please answer the next 5 questions based on the following information. Please use the exact, not the approximate formula to answer all questions. Current spot rate of SF $0.6543; Current 1-year forward rate for SF-30.6808; 1-year interest rate in the US,-3.5%; 1-year interest rate in the Switzerland = 7.5% the spot rate of SF one year latter is $0.6925, then uncovered rate of return from the US point of view would be: 25. If a. 4.04% b. 9.54% c, 11.85% d. 13.78% 26. If you borrowed in $5,000,000 and invested in SF, and the spot rate of SF one year latter turned out to be S0.6925, then your profit/loss from the uncovered transaction at the end of the year would be: a. $200,000 b. $375,000 c. $417,694 d $513,809

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