Required:

Calculate the following exchange rates $($ZAR and USD refer to the South African rand and U$.$S$.$ dollar, respecti

a$.$ The current ZAR spot rate in USD that would have been forecast by PPP$.$

Note: Do not round intermediate calculations. Round your answer to $4$ decimal places.

b$.$ Using the IFE, the expected ZAR spot rate in USD one year from now.

Note: Do not round intermediate calculations. Round your answer to $4$ decimal places.

c$.$ Using PPP$,$ the expected ZAR spot rate in USD four years from now.

Note: Do not round intermediate calculations. Round your answer to $4$ decimal places.Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity $($PPP$)$ and the International

Fisher Effect $($IFE$)$ to forecast spot exchange rates. Omni gathers the financial information as follows:

Required:

Calculate the following exchange rates $($ZAR and USD refer to the South African rand and U$.$S$.$ dollar, respectively$)$:

a$.$ The current ZAR spot rate in USD that would have been forecast by PPP$.$

Note: Do not round intermediate calculations. Round your answer to $4$ decimal places.

b$.$ Using the IFE, the expected ZAR spot rate in USD one year from now.

Note: Do not round intermediate calculations. Round your answer to $4$ decimal places.

c$.$ Using PPP$,$ the expected ZAR spot rate in USD four years from now.

Note: Do not round intermediate calculations. Round your answer to $4$ decimal places.