a$.$ What is interest rate parity? Explain with example.

b$.$ What is spot rate, forward rate and future rate? Explain with examples.

c$.$ What is interest rate parity? What is purchasing power parity? Explain both with examples.

d$.$ Suppose that the one$-$year interest rate is $12$ percent in the United Kingdom. The expected annual rate of inflation for the coming year is $10$ percent for the United Kingdom and $4$ percent for Switzerland. The current spot exchange rate is $f$:$SFr=3.$ Using the precise form of the international parity relations, compute the one$-$year interest rate in Switzerland, the expected Swiss franc to pound exchange rate in one year, and the one$-$year forward exchange rate.