sales 516 tes 3 40 1 GRP. Then it care o 180 , 13 On , Se hele US and the UK with the day of the USGEP. There are so wie OBS NO 10 Odont WOW Suppose the expected rate of inflation in year 1 and year 2 is 3% p.a. and 4% p.a. respectively in Australia. What must the constant annual expected rate of inflation be in the US such that the exchange rate today is the same at the end of year 2? O a. 3.4988% b. 7.1225% O c. 7.000% d. 5.4925% Suppose that annual interest rates are 5% in the U.S. and 3% in the UK with the 60-day forward rate for the pound at USD1.408/GBP. Then the current spot rate will be at a of_ to the forward rate, such that the interest rate parity condition is satisfied. O a. premium, 0.328% O b. discount, 0.331%. O c. discount, 0.326% O d. premium, 0.329%