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please solve Foreign Exchange Canadian European Spot price One-year actual forward Your one-year forecast for interest rate interest rate of the Euro price of the

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Foreign Exchange Canadian European Spot price One-year actual forward Your one-year forecast for interest rate interest rate of the Euro price of the Euro the spot price of the Euro 6.2 5.0% 1.4300 1/4600 1.4500 Prices are in Canadian dollars. The forward price is not necessarily an equilibrium price 21. According to the Uncovered Interest Rate Parity Theorem, the Euro is expected to. A. depredate. B. appreciate. C remain unchanged. 22. The forward market is predicting that the Euro will... A. depredate. B. appredate. C. remain unchanged. 23. How would you speculate in this situation? A. Borrow abroad and invest at home B. Borrow abroad, invest at home, buy Euros forward C. Borrow at home and invest abroad D. Borrow at home invest abroad, sell Euros forward E. There is no arbitrage opportunity 24. What is the expected profit for a speculative investment of $1 million? A. 2 65090 D. . $5,900 E. > $8,000 25If you don't care about risk, what would you do A. Arbitrage Do nothing

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