The peso is the currency of Argentina. Suppose that the peso/$ forward exchange rate, F, is exactly equal to traders' expectations for the value of the peso/$ spot rate, E, in one year's time. If F = 1.12 and E= 1.10, what is the forward discount on pesos? a. Assuming that interest rate parity (IRP) holds, what would you expect to be true of the interest differential between one-year dollar deposits and one-year peso deposits, that is, R$ - b. Rpeso? c. Argentina has a long history of defaulting on its foreign debt. Do you think that the IRP condition is likely to hold for dollar- versus peso-denominated deposits? If not, do you think the interest differential R$ - Rpeso is likely to be greater or less than what is predicted by IRP