Question 4 a) Analyze the effect of rising inflation rate in the Ghanaian economy on the foreign exchange rate of the Ghana cedi to US dollar. AN (8) b) You just returned from your dream vacation to France and feel rich because you have 8,000 Euros left over. You now need to convert this to U.S. dollars. How much will you have, given that USD 1.000: 0.86? c) The spot exchange rate and the 91-day forward rate in terms of dollars per pound are $1.4321: 1 and $1.4933: 1, respectively. i) Suppose you are expecting to receive 115,000 British pounds in 3 months, and you agree to a forward trade to exchange your pounds for dollars, how many dollars will you get in 3months? AP (6) ii) Justify if the pound is selling at a discount or a premium relative to the dollar? AN (6)