Q1. You expect that the Mexican peso will depreciate against the Australian dollar from its spot rate of A$0.2578 to A$0.2226 in one year. The following interbank lending and borrowing rates exist:

Lending Rate Borrowing Rate

Australian dollar 7.97% 8.79%

Mexican peso 8.05% 9.32%

You have a borrowing capacity of either 2 million Australian dollars or 5 million Mexican pesos in the interbank market. Without using your own deposited fund, estimate the profits in percentage.

Q2. A year ago, you observed that the US dollar was valued at 1.0553 while the Euro was valued at 1.1633. Today, the US dollar is valued at 1.0231 and the Euro is worth 1.5312. Determine the value of Euro changed against the US dollar (US$/Euro) in percentage over the last year.

Q3. An Australian exporter has received goods from India and will pay 2 million Indian rupees (INR) in one year. The exporter expects that the value of the INR will appreciate by 23.87% against the Australian dollar from today's spot rate of 0.2844 in one year. How much Australian dollar the exporter will make a prot in percentage (%) due to appreciation of INR after one year?

Q4. An Australian importer has received goods from India and will pay 2 million Indian rupees (INR) in one year. The importer expects that the value of the INR will appreciate by 21.69% against the Australian dollar from today's spot rate of 0.2816 in one year. How much Australian dollar the importer will make a loss in percentage (%) due to appreciation of INR after one year?

Q5. An Australian exporter has supplied goods to India and will receive 1 million Indian rupees (INR) in one year. The exporter expects that the value of the INR will depreciate by 23.95% against the Australian dollar from today's spot rate of 0.2751 in one year. How much Australian dollar the exporter will make a loss in percentage (%) due to depreciation of INR after one year?

Is it possible to explain step-by-step? Thank you.