Your start-up company has negotiated a contract to provide a database installation for a manufacturing company in Poland. That firm has agreed to pay you $ 110, 000 in three months time when the installation will occur. However, it insists on paying in Polish zloty (PLN). You don't want to lose the deal (the company is your first client!), but are worried about the exchange rate risk. In particular, you are worried the zloty could depreciate relative to the dollar. You contact Fortis Bank in Poland to see if you can lock in an exchange rate for the zloty in advance. You find the following table posted on the bank's Web site, showing zloty per dollar, per euro, and per British pound:

2 months 3 months 1 week 2 weeks 1 month USD 3.1469 3.1452 purchase 1397 3.1404 3.1316 3.1746 3.1801 3.1727 3.1715 3.1759 Sale EUR 3.7814 3.7836 3.7804 3.7871 3.7906 purchase 3.8226 3.8254 3.8298 3.8342 3.8214 Sale GBP 5.5131 5.5112 5.5078 5.5048 purchase 5.5131 5.5750 5.5750 5.5735 5.5705 5.5681 Sale a. hat exchange rate could you loc in for the zloty in three months? How many zloty should you demand in the contract to receive $110,000 a. What exchange rate could you lock in for the zloty in three months? You could lock in an exchange rate of zlot per U.S. dollar in three months time through a forward contract with the bank. Round to four decimal places ty How many zloty should you demand in the contract to receive $110,000? You would need to write the contract for zloty. Round to the nearest integer) b. Given the bank forward rates in part (a), were short-term interest rates higher or lower in Poland than in the United States at the time Thus, the zloty interest rate is the dolar interest rate. Select from the drop-down menu.) How did Polish rates compare to euro or pound rates? Explain. Select from the drop-down menus.) In general, from the covered interest parity formula we can tell which rate is higher by seeing if the forward rate is above or below the spot rate. From the table, the forward rates appear to be for the British pound, so the pound interest rate w Y at the time of these quotes. The euro forward rates are than as the spot rates, howeve suggesting that Polish interest rates V than those for the euro ere