Based on Holts needs, he has provided you with the following list of questions to be answered: 1. How are percentage changes in a currencys value measured? Illustrate your answer numerically by assuming a change in the Thai bahts value from a value of $0.022 to $0.026. 2. What are the basic factors that determine the value of a currency? In equilibrium, what is the relationship between these factors? 3. How might the relatively high levels of inflation and interest rates in Thailand affect the bahts value? (Assume a constant level of U.S. inflation and interest rates.)4. How might the loss of confidence in the Thai baht, evidenced by investors withdrawal of funds from Thailand, affect the bahts value? Would Blades be affected by the change in value, given the primary Thai customers commitment? 5. Assume that Thailands central bank wishes to prevent a withdrawal of funds from its country so as to prevent further changes in the currencys value. How could it accomplish this objective by manipulating interest rates? 6. Construct a spreadsheet illustrating the steps that Blades treasurer would need to follow to speculate on expected movements in the bahts value over the next 30 days. Also show the speculative profit (in dol-lars) resulting from each scenario. Use both of Holts examples to illustrate the possible speculation. Assume that Blades can borrow either $10 million or the baht equivalent of this amount. Furthermore, assume that the following short-term interest rates (annualized) are available to Blades: CURRENCY Dollars Thai baht L ENDING RATE 8.10% 14.80% BORROWING RATE 8.20% 15.40%