please solve the 5 parts of problem 9

Problem 9 1. states that nominal interest rates in each country are equal to the required real rate of return plus compensation for expected inflation. * a. Absolute PPP O b. Relative PPP O c. The Law of One Price . d. The Fisher Effect e. None of the above 2. A/An option can be exercised only on its expiration date, but alan option can be exercised anytime between the date of writing up to and including the exercise date. a. American; European O b. American; British c. Asian; American d. European; American e. None of the above 3. All exchange-traded options are settled through a clearing house but over-the-counter options are not. Therefore, they are subject to greater risk. * O a. Exchange rate b. Country O c. Counterparty d. None of the above e. None of the above 4. states that the spot exchange rate is determined by the relative prices of similar baskets of goods. a. Absolute purchasing power parity b. Relative purchasing power parity c. Interest rate parity O d. The Fisher Effect e. None of the above 5. The Basic Balance is another name for: * . a. The current account. O b. The capital account. . c. The financial account. O d. A, B &C e. None of the above