urgent and thank you

A) Explain the international Fisher effect (IFE). What is the rationale for the existence of the IFE? (2 marks)

B) Assume U.S. interest rates are generally above foreign interest rates. What does this suggest about the future strength or weakness of the dollar based on the IFE? Should U.S. investors invest in foreign securities if they believe in the IFE? Should foreign investors invest in U.S. securities if they believe in the IFE? (3 marks)

ICLO-51 Assume that Singtrade Co., a multinational company based in the US expects to receive 551,000,000 in one year. The existing spot rate of the Singapore dollar (55) is 5.61. The one-year forward rate of the Singapore dolaris 5.63. The company expects the future spot rate to be 5.62 with 70 percent probability or 5.68 with 30 percent probability Assume that one year put options on Singapore dollars are available, with an exercise price of 5,64 and a premium of 5.03 per unit. One-year cal options on Singapore dollars are available with an exercise price of 5,62 and a premium of 5.03 per unit. Assume the following money market rates. 7 w Singapore Deposit rate Borrowing rate SW Given this information, determine whether a forward hedge money market hedge, or a currency options hedge would be most appropriate