The spot rate is 17.75 TL/. The interest rate in TL is %14, whereas the interest rate in the is 0.25%. According to the Interest Rate Parity Theorem what should be the FX rate one year from today? What is the amount of appreciation in ? What is the amount of depreciation in TL? If you engage in a forward aggreement at a rate of 22 TL/ to be exercised one year later, how can you arbitrage and what would be your arbitrage return? (TL = Turkish Lira)