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 $114,000 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 clientl), 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 1 week 1 month 2 months 3 months purchase sale 3.1403 3.1796 3.1439 3.1748 3.1351 3.1752 3.1386 3.1684 2 weeks USD 31459 3.1803 EUR 3.7814 3.8226 GBP 5.5131 5 5750 purchase sale 3.7804 38214 3.7836 3.8254 3.7871 3.8298 3.7906 3.8342 purchase 5.5048 5.5131 5.5750 5.5112 5.5735 5.5078 5.5705 Sale 5.5681 ...O a. What exchange rate could you lock in for the zloty in three months? You could lock in an exchange rate of zioty per U.S. dollar in three months time through a forward contract with the bank. (Round to four decimal places.) How many zloty should you demand in the contract to receive $114,000? 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 panty 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 V at the tima nf thace untec The Aur forward rates are than the snot rates however sunnecting that Polish interest rates worn than those for the en for the British pound, so the pound interest rate was Submit test 5.5/05 5.5681 You could lock in an exchange rate of zloty per US dollar in three months time through a forward contract with the bank (Round to four decimal places) How many zloty should you demand in the contract to receive $114,000? 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 at the time of these quotes The euro forward rates are than the spot rates, however, suggesting that Polish interest rates were than those for the euro for the British pound, so the pound interest rate was