This exhibit shows the historical spot rate on the USD/TRY since the end of November 2017 through end of November 2020, when quoted spot rate was USD/TRY 7.900. USD/TRY TRY 3.50 TRY 4.00 TRY 4.50 TRY 5.00 TRY 5.50 TRY 6.00 TRY 6,50 TRY 7.00 TRY 7.50 TRY 8.00 TRY 8.50 1.900 TRY 9.00 TRY 9.50 TRY 10.00 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-2 Max 20 oc-any Nov-20) Feb-21 May-21 Aug-21 Nov-21 Below are the midpoint forward PIPS on the USD/TRY exchange rate over the 3-, 6-, 9-, and 12-month forward terms quoted at the end of November 2020. Calculate the implied forward midpoint quotes, PIPs PIPs plot them on the graph, and label them. Forward rates are calculated as Ft = S. + = 7.9 + 10,000 10,000 Forward term Midpoint PIPs Forward midpoint 3-months Teb. 2021 2800 a 6-months May 2021 5960 b 9-months 9300 Aug. 2021 1 year 12,700 d Nov. 2021 For discussion: What do you infer from comparing the forward midpoints to the current spot rate? Under the expectations hypothesis, how does the FOREX market predict the USD/TRY to evolve over the next twelve months? Specifically, by how much is the Turkish lira expected to appreciate or depreciate over the next one year according to the expectations hypothesis? % This exhibit shows the historical spot rate on the USD/TRY since the end of November 2017 through end of November 2020, when quoted spot rate was USD/TRY 7.900. USD/TRY TRY 3.50 TRY 4.00 TRY 4.50 TRY 5.00 TRY 5.50 TRY 6.00 TRY 6,50 TRY 7.00 TRY 7.50 TRY 8.00 TRY 8.50 1.900 TRY 9.00 TRY 9.50 TRY 10.00 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-2 Max 20 oc-any Nov-20) Feb-21 May-21 Aug-21 Nov-21 Below are the midpoint forward PIPS on the USD/TRY exchange rate over the 3-, 6-, 9-, and 12-month forward terms quoted at the end of November 2020. Calculate the implied forward midpoint quotes, PIPs PIPs plot them on the graph, and label them. Forward rates are calculated as Ft = S. + = 7.9 + 10,000 10,000 Forward term Midpoint PIPs Forward midpoint 3-months Teb. 2021 2800 a 6-months May 2021 5960 b 9-months 9300 Aug. 2021 1 year 12,700 d Nov. 2021 For discussion: What do you infer from comparing the forward midpoints to the current spot rate? Under the expectations hypothesis, how does the FOREX market predict the USD/TRY to evolve over the next twelve months? Specifically, by how much is the Turkish lira expected to appreciate or depreciate over the next one year according to the expectations hypothesis? %