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The President of the OMICRON FOREX Bank is offering you the Financial Analyst position because he admires your knowledge and your character. The Omicron Forex

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The President of the "OMICRON" FOREX Bank is offering you the Financial Analyst position because he admires your knowledge and your character. The Omicron Forex Bank is celebrating its 100 Year Day Anniversary and around you exist a crowd of important Investment and Forex Bankers that ask you questions regarding the Forward Premium and Forward Discount, Inflation and the Direct and Indirect Exchange Rates respectively. The Home Country is U.S.A and the Host Country is Canada. (1.) Given that the Spot Exchange Rate is 1 USA is equal to 1.35 Canadian dollar and the nominal interest rates in U.S.A and Canada are 4% and 5% respectively, calculate the five-year Forwards Exchange Rates. (2.) What are the Direct and Indirect Exchange Rates? (3.) Calculate the Forward Premium and Forward Discount for these particular currencies. (4.) What is a Zero-Sum Game? (5.) Support your answers for the Inflation by well-drawn diagrams

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