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Though the real estate market has been depressed' in some countries due to the aftermath of the global financial crisis, the markets 1n some countries

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Though the real estate market has been depressed' in some countries due to the aftermath of the global financial crisis, the markets 1n some countries or cities have kept their robust gromh' in prices and expansions. A noteworthy case is commercial and residential properties in Copenhagen, Denmark. Tb tap into the above market, you are contemplating a sieeabie investment in a commercial property. You are, however, much concerned with price appreciation irt USD, since USD is your functional currency. The following data on the US and Denmark are made available to you. The currency of Denmark is Danish Kroner, or Krone, and we use DKK for it below. Spot rate DKK 6.391115 12-month forward rate DKK assess Inflation in US 2.1] percenuyear Inflation in Denmark 4.4 percenuyear Interest rate in US 3.2 percenuyear Interest rate in Denmark 5.5 percenuyear Based on the above information, answer the following FIVE questions. However, please first follow the instructions below careftdly and throughout for ALL the FIFTEEN questions: - Use the accurate approaches in forecasting in your computations. - Corryyour accuracy to at least four digits beyond the decimal points. - Do not round the numbers in the internal steps of your computations. If you have to, then lreep at least four digits beyond the decimal points throughout. - Simply enter your answers in the template. Ibur internal computations are not required and no spaces for entering them are provided. - ifyou need to enter a loss, indicate it by a negative sign; the template does not recogniee parenthesis. - Do not convert the amounts into millions or thousands. The template is set to receive the actual amounts. - Drop percentage sign {96} and currency symbols like 5, DRE; etc., when entering the figures into the template. The template recognizes only numerical values. - Finally. please note that a some I", "j is not a decimal point. - in brief, the answers should be only and only nranerical, lilte 423.1156 if negative, or IESAEE if positive. 1. Forecast the outright value of DKK for next year on the basis of the relative purchasing power parity. 2. Forecast the outright value of DKK for next year on the basis of the international Fisher effect. 3. Forecast the outright value of DKK for next year on the basis of the unbiased theory of the forward rates

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