1. A table sells for $1,234 in the US. The price in Europe is $4,567. What is the opportunity to make a profit from this situation? What is the price in Europe in euros today?_The current exchange rate is 1.00 = $1.2175._After the table is sold, the revenue has to be converted to dollars. The exchange rate changed and is 1.00 = $1.2205._After converting the euro revenue to dollars, what is the profit in dollars?_How does the actual profit compare to the expected profit? Was this a good decision? 2. Define the spot market and the forward market for FEX._The exchange rate in the spot market for the British pound is 1.00 = $1.3228. The 90 day forward rate is 1.00 = $1.3239. Is the pound getting stronger or weaker compared to the US dollar? Why? 3. How can an investor make a profit from the rates in question 2? Which currency should the investor go long and which currency go short? Why? 4. What is political risk? How would you recommend the company manage political risk? 5. Can the foreign exchange market be regulated? Why or why not? 1. A table sells for $1,234 in the US. The price in Europe is $4,567. What is the opportunity to make a profit from this situation? What is the price in Europe in euros today?_The current exchange rate is 1.00 = $1.2175._After the table is sold, the revenue has to be converted to dollars. The exchange rate changed and is 1.00 = $1.2205._After converting the euro revenue to dollars, what is the profit in dollars?_How does the actual profit compare to the expected profit? Was this a good decision? 2. Define the spot market and the forward market for FEX._The exchange rate in the spot market for the British pound is 1.00 = $1.3228. The 90 day forward rate is 1.00 = $1.3239. Is the pound getting stronger or weaker compared to the US dollar? Why? 3. How can an investor make a profit from the rates in question 2? Which currency should the investor go long and which currency go short? Why? 4. What is political risk? How would you recommend the company manage political risk? 5. Can the foreign exchange market be regulated? Why or why not