Please answer ALL questions not ONE of them

1. If the implied PPP exchange rate is S1.45/ and the actual exchange rate is $1.35/, the U.S dollar is overvalued? a) True b) False 2, A Japanese investor assumes that the IFE does not hold. Suppose interest rates are 6% in the U. S and 1% in japan. The initial exchange rate is Y100/$. What is the percentage rate of return for a Japanese investor who starts with 1,000,000 assuming that over the year the exchange rate goes to 978? a) 3.00% b) 8.16% c) 4.00% d) 2.82% 3, interest rates are 2% lower in the US than in the foreign country. The foreign currency exhibits a 3% forward discount. Who has a covered interest arbitrage opportunity? a) Foreign inventors investing in the U.S b) No one, since the forward discount exceeds the interest rate differential c) Foreign investors investing in their own country d) U.S investors investing in the U.S e) U.S investors investing in the foreign country