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plz solve in 60 mins. i dont have more info solve it anyways i will thumb up. 3. (10 points) The uncovered interest parity and

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plz solve in 60 mins. i dont have more info solve it anyways i will thumb up.

3. (10 points) The uncovered interest parity and the expected rate of appreciation of the domestic currency relative to the foreign currency Start from the uncovered interest parity. Using the fact that In(1 + x) = x for small x's, show Ef+1-Et Et Ef+1-Et when it, it, and are small (HINT: Note that Et Et E+1/Et 1 that it - = = Ef +1 1 Etsi-E Et therefore, in C) = -1n(1+639))) + (1-E . 1+ Et t+

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