Question: 19 & 20 are together so please answer both. Jennifer Anderson does not believe that the international Fisher effect (IFE) holds. Current one-year interest rates

19 & 20 are together so please answer both.

Jennifer Anderson does not believe that the international Fisher effect (IFE) holds. Current one-year interest rates in Mexico are 9 percent, while one-year interest rates in the U.S. are 5 percent. Jennifer Anderson converts $100,000 to Mexican pesos and invests them in Mexico. One year later, she converts the Mexican pesos back to dollars. The current spot rate of Mexican peso is $0.0500. If the spot rate of Mexican peso in one year is $0.0470, what is Jennifer Anderson's percentage return from her strategy? 3.82%. 4.74%. 2.46%. 15.96% Continued from above, what must the spot rate of Mexican peso be in one year for Jennifer Anderson's strategy to be successful? (Hint: You will find the cutoff interest rate using the International Fisher Effect. Rounded the answer to 4 decimal points.) As long as the spot rate is abo above $0.0519 per Mexican peso, Jennifer Anderson's strategy can be successful. As long as the spot rate is above $0.0482 per Mexican peso, Jennifer Anderson's strategy can be successful. As long as the spot rate is below $0.0482 per Mexican peso, Jennifer Anderson's strategy can be successful. As long as the spot rate is below $0.0519 per Mexican peso, Jennifer Anderson's strategy can be successful

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