Please answer IMMEDIATELY!

6) The three-month interest rate on yen is i=1% per annum; the three-month interest rate on euros is i=5.5% per annum. Which one of the following statements is correct?

Select one:

a. In a carry trade between euro and yen for three months, the profit will be 0.0315(for each yen borrowed) if the euro has appreciated 2% against yen in the three months.

b. Based on the Uncovered Interest Rate Parity, the euro is expected to appreciate by 4.5% against yen next three months.

c. According to the asset market approach, the current spot rate should be 1.293/ if the expected three-month spot rate S₃(/)=1.250.

d. To start a carry trade, a trader can short the euro against yen in three-month forward contracts.

e. The euro is going to appreciate in the next year.

12) National Bank has a $200b of Adjustable Rate Mortgage (ARM) as assets on its balance sheet. The interest rate on the ARM is 3%+Libor. As a result, the bank will receive floating interest. The bank is considering hedging the risk in the interest income from the assets with a three-year interest rate swap. What should be the banks receipt and payment cash flows in the swap?

Select one:

a. The Bank should pay Libor and receive Libor+3% interest rate.

b. The Bank should pay Libor and receive Libor interest rate.

c. The Bank should pay fixed and Libor fixed interest rate.

d. The Bank should pay fixed and receive fixed interest rate.

e. The Bank should pay Libor and receive fixed interest rate.