uppose annua several years. If the current spot rate for the Mexican o, respectively, over the ne peso is $.005, then the best estimate of the peso's spot value in 3 years is A. $.01190 B. $.00321 C. $.00102 2. If the expected inflation rate is 5% and the real required return is 6%, then the Fisher effect says that the nominal interest rate should be A. 0.03% B. 11.3% C. 1% 2 3. When exchange rates are quoted as the number of U.S. dollars per unit of foreign currency, it is referred to as A. American terms B. European terms C. spot-market terms 4. Suppose the direct quote for pound in U.S is $1.9719-28, then the bid price for dollar in U.K can be written as A. $1.9719/e C. 5. actively expose themselves to currency risk by buying or selling currencies oroft from evchange rate Auctuations