If the spot rate for Euro is .81 Euro is equal to 1 US $, and the annual interest rate on fixed rate one-year deposits of Euro is 2.5% and for US$ is 1.5%, what is the nine-month forward rate for one Euro in terms of dollars? Assuming the same interest rates, what is the 18-month forward rate for one dollar in Euros? Is this an indirect or a direct rate? If the forward rate is an accurate predictor of exchange rates, will the Euro get stronger or weaker against the dollar? What does this indicate about the market