The following exchange rates are forecast for one-year hence. Are they in equilibrium? Why? One-year forecast are 0.90/$, $1.70/ and 1.48/.

a. Yes, because the cross rates and forecast rates for the / are equal.

b. No, because the forecast rate of 1.48/ requires fewer to obtain a than that forecast by the cross rates.

c. No because the forecast rate of 1.48/ requires more to obtain a than that forecast by the cross rates.

d. Not enough information to determine the correct response.