Need help with all these Multiple Choice questions, only the answer is fine if the explanation is complicated, but please ensure the accuracy

Question 11 1 pts Suppose that the average price of a Big Mac in the United States is $315 while in Japan the average price is 420 yen and that the market exchange rate (RM) is 105. Which of the following statements is suggested by the purchasing power parity model of foreign exchange rates? 0 The yen is overvalued. Q The yen is undervalued. CI The price of a Big Mac in Japan will rise. 0 The dollar will depreciate against the yen. Question 12 1 pts Suppose a US investor decides to buy a government bond in Germany, which has been offered at an interest rate of 8%. A comparable US government bond is offering an interest rate of 6%. The investor wants to assure that he will make at least 6% at the end of the bond period and so buys a forward foreign exchange contract. Assume the current exchange rate is Ryan\Question 13 1 pts Suppose the US investor from the previous question decides to purchase the government bond from Germany but n_ot to purchase the forward foreign exchange contract, because he expects that markets will provide uncovered interest rate parity. Which of the following statements best describes the reasoning behind this expectation? 0 He expects that market forces will cause the euro to depreciate by the necessary amount to achieve interest rate parity. 0 He expects that market forces will cause the euro to appreciate by the necessary arnolrlt to achieve interest rate parity. 0 He expects that market forces will cause the US dollar to depreciate by the necessary amount to achieve interest rate parity. 0 He expects that market forces will create purchasing power parity between the United States and Germany. Question 14 1 pts Supposed the domestic interest rate is 5%, the foreign interest rate is 7%, and the exchange rate is 2. According to the covered interest rate parity, what is the forward exchange rate? 0 1.9.5 o 1.96 O 2.04 CI 12.244393 Question 8 1 pts Suppose: 1 f = 2.435 $ in New York 1 $ = 1.07 6 in Paris 1 6 =0.4 f in London 2 https://canvas. pitt. edu/courses/77225/quizz How much could you profit per pound initially traded? O 0.04218 E O 0.1042 E O 0.6055 E O 1.6055 EQuestion 9 1 pts Covered interest rate parity involves both O the purchase of a foreign asset and a forward contract in the market for foreign exchange. O the purchase of a domestic asset and a spot contract in the market for foreign exchange. O the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange. O the sale of domestic stocks and the purchase of foreign bonds. Question 10 1 pts If absolute PPP holds, then the real exchange rate must be equal to O a constant O one zero O a positive number k 2 https://canvas. pitt. edu/courses/77225/quizz O a negative number