On 29 March 2004, the €/$ exchange rate was €0.82/$ compared to €0.94/$ exactly one year before. On the same day, the £/$ exchange rate was £0.56/$ compared with £0.62/$ one year earlier

1 Calculate the percentage appreciation of the euro against the dollar over the previous year. Calculate the percentage appreciation of sterling against the dollar over the previous year. 

2 Calculate the percentage appreciation or depreciation of sterling against the euro over the previous year. Calculate the percentage appreciation or depreciation of the euro against sterling over the previous year. 

3 Does the percentage appreciation or depreciation of sterling in (1) equal the euro depreciation or appreciation in (2) multiplied by negative one? Explain your answer. 

4 Review the international parity conditions. Do you believe they work? Explain.