please show the work for the math problems

3) Which of the following statements are false regarding the Purchasing Power Parity? the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels II. the prices of standard commodity baskets in two countries are related. III. as t e purchasing power of a currency sharply declines (due to hyperinflation) that currency will appreciate against stable currencies. a) Ionly b) l only c) | only d) I and II only e) None of the above choices $1.50 and the rates of inflation expected to prevail for the , that 4) Suppose, the one-year forward rate is Euro 1.00 next year in the US. is 2% and 3% in the euro zone. Under PPP, what is the spot rate, ei-s should prevail, round to 4 decimal places? 5) Which of the following statements are true regarding the Interest Rate Parity (IRP)? I. The IRP holds all the time. II. When the IRP does not hold, assume no transaction costs, there are opportunities for covered interest arbitrage. Relative to the Purchasing Power Parity (PPP), the IRP are violated (evidence against it) more often. a) b) c) I only II only III only d) I and II only e) None of the above choices