$1.(5$ Points$)$ You are given the following information:

Interest rate parity exists between the U$.$S$.$ and India as well as the U$.$S$.$ and Chile. The international Fisher effect exists between the U$.$S$.$ and India as well as the U$.$S$.$ and Chile. The official currency of India is the Indian rupee and the official currency of Colombia is the Chilean peso.

Aiden $($based in the U$.$S$.)$ invests in a one$-$year CD $($certificate of deposit$)$ in India and sells Indian rupee one year forward to cover his position.

Ellie $($based in India$)$ invests in a one$-$year CD in Chile and does not cover her position.

What are the returns on funds invested for Aiden and Ellie respectively? What conclusions$/$comments related to IRP and$/$or IFE can you make from Aiden's return and Ellie's return respectively? $($Hint: You can get the exchange rate between the Indian rupee and the Chilean peso from their respective rate to USD.$)$

ANS: Please clearly label your return calculations, i$.$e$.,$ the investment return for Aiden and Ellie respectively.