The current spot exchange rate is S0$/ = $1.10/ and the one-year forward rate is F1$/ =

Question:

The current spot is S0$/€ = $1.10/€ and the one-year forward rate is F1$/€ = $1.11/€. The prime rate in the United States is 5 percent.
a. What is the prime rate in euros if the international parity conditions hold?
b. According to forward parity, by how much should the euro change in value during the next year?
c. By how much should the dollar change in value during the next year?
d. If this forward premium persists into the future, what should be the euro's value in five years?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...