Suppose a government raises interest rates on its currency. If this doesn't impact beliefs about the currency's future value (i.e., doesn't change the forward price of the currency), then the spot price of the currency:

		Must rise
		Could rise or fall
		Must stay the same
		Must fall

The euro is trading at $1.15. One-year dollar bonds are trading at 0.92 (per dollar of face). One-year euro bonds are trading at 0.96 (per euro of face). The one-year forward price of the euro is closest to:

		$1.20
		$1.05
		$1.15
		$1.10

Tin is currently trading at $25,500/ton. The 1-year forward price of tin is $25,200/ton. One-year zero-coupon bonds are trading at $0.95 per dollar of face.The value of a one-year forward contract to buy a ton of tin at today's spot price is closest to:

		-$316
		-$285
		$316
		$285