QUESTION 1

1. A 80,000 Czech Koruna with a 5000 Koruna coupon is trading for 80,500 Koruna, and 12,000 Euro Bill with a 200 Euro coupon is trading at 11,900 Euro. Both mature in 1 year.

   If uncovered interest parity holds, the market believes the Koruna will depreciate against the Euro by approximately _____ % in a years time. (Round to the nearest 2 decimal points)

QUESTION 2

1. A 4000 Swedish Krona bill with a 200 Krona coupon is trading for 3500 Krona, and a 5000 Swiss Franc Bill with a 50 Franc coupon is trading for 4500 Francs. Both mature in 1 year. The Franc is currently trading at 9 Swedish Krona. If uncovered interest parity holds, the market believes the franc will trade at ____ Krona in 1 years time. (Round to the nearest 2 decimal points)

QUESTION 3

1. 1 Euro is currently trading at 38 Thai Baht. 1 Thai Baht is currently trading at .04 Canadian Dollar. If triangular arbitrage holds, the value of the Euro in terms of the Canadian Dollar is ____? (Round to the nearest 2 decimal points)