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Please provide formulas used and step by step. b) From the information in the following table of forward rates and interest rates from the inter-bank

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Please provide formulas used and step by step.

b) From the information in the following table of forward rates and interest rates from the inter-bank FX market for Oct. 12, 2018 calculate all possible (annualized!) interest rates implied by the covered interest parity condition. US$/unit CAS/unit Britain Spot Pound 1.31513 1.7143 1 month forward 1.31694 1.71485 3 months forward 1.32136 1.71615 6 months forward 1.32727 1.71814 US$/unit (Annualized) International Interest Rates on 2018.10.12 Euro-Deposit Rates US$ 1-month 2.27950% 3-month 2.43631 6-month 2.63525 C$ 1-month 1.052 % 3-month 1.1735 6-month 1.385

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