Suppose the current interest rate on a dollar deposit ($) is 4% and on a Euro deposit () is 3%. Today's exchange rate ($/) is $1.5000/; and the expected exchange rate one year in the future $/ $ is $1.5264/. Current average price index of U.S. and Euro zone is %& = 100 and '% = 80 , respectively. The expected average price index for U.S. and Euro zone in one year is %& $ = 120 , and '% $ = 100, respectively. a) [4pts] Calculate the one-year expected inflation rate for U.S. and Euro zone, respectively. b) [4pts] Calculate: (i) today's real exchange rate $/ and (ii) one-year expected real exchange rate $/ $ . Must keep four decimals. c) [7pts] Does the real interest rate parity hold here? Show the (i) formula and (ii) your calculation for left and right side of real interest rate parity equation based on given numerical information, and (iii) your conclusion: hold or not hold?.