I.PROBLEMS$1)$ The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are $-\mathrm{.}01$ and $\mathrm{.}03$ respectively. What kind of arbitrage will induce a profit for you, if the forward rate is $\mathrm{.}95$ Swiss francs equal $$1?$ Assume you start with $$1$ million. $2)$ Expound on interest parity theory in the aforementioned context. Is the above situation sustainable? Specifically, how does this problem exhibit IPT? $($You have to connect your results with IPT.$)1)$If the inflation rate in the British pound versus the US $ is $11\%,$ while the exchange rate is $1$ pound exchanges for $$1\mathrm{.}25$ presently, if $$the future spot rate is$$1\mathrm{.}20,$ what is the US inflation rate? $2)$ What is the meaning of the above in the context of PPP$?$ Specifically, you have to$$ connect your results to PPP $$ C$.1)$ If the interest rates are $\mathrm{.}12$ and $\mathrm{.}05$ in Malaysia and Canada respectively, what will$$happen to the ringgit versus the Canadian dollar, if presently they exchange as $4$ ringgit $$for one dollar? Explain the principle holding true with the aforementioned problem. Specifically, you have to tie the results you got with the international Fisher effect. $$ We have the following information. We expect the spot exchange rate $$for$$a year delivery from now between the Egyptian pound and the Mali West $$ African franc $($CFA$)$ is $\mathrm{.}039.$ The forward rate is $\mathrm{.}038$ Egyptian pound nper CFA. How$$would we speculate in the spot markets and in the forward one to make profit? $$Presuppose$,$ we have the equivalent of $10$ million rand. $$ What risks are present in this case?$$ II$.$ ESSAYS$$ Expound on how PPP relates to IFE and in turn relates to IPT. You have to mention how inflation rate relates to interest rate and furthermore$$ relates to exchange rate differentials. Discuss intervention in the foreign exchange market. What are the different forms and its success? Elaborate on the European Union in the context of the International Financial System. Explain the current account view of ER determination Explicate the monetary approach theory to ER determination Talk on the asset approach view of ER determination Analyze the efficiency, technical and fundamental views of exchange rate determination.