question 4: please only aswer this question for part a, b and c. Forward Rate and Interest Rate Parity parts a, b and c.

A) Does forward market exist on the Polish Zloty against US Dollar and/or other major currencies?

Find the one year forward rate at the beginning of year 2014 and 2015.

Forward rate chart for 2014 and 2015 for the Polish Zloty is below:

Date	Price	Open	High	Low	Change %
Jan 30, 2014	4.2316	4.2184	4.2471	4.2116	0.14%

Highest: 4.2471

Lowest: 4.2116

Difference: 0.0355

Average: 4.2316

Change %: 0.1372

Date	Price	Open	High	Low	Change %
Jan 30, 2015	4.1814	4.2109	4.2209	4.1747	-0.76%

Highest: 4.2209

Lowest: 4.1747

Difference: 0.0462

Average: 4.1814

Change %: -0.7618

Forward rate chart for 2014 and 2015 for the USD is below:

Date	Price	Open	High	Low	Change %
Jan 30, 2015	1.1288	1.1319	1.1365	1.1277	-0.28%

Highest: 1.1365

Lowest: 1.1277

Difference: 0.0088

Average: 1.1288

Change %: -0.2827

Date	Price	Open	High	Low	Change %
Jan 30, 2014	1.3556	1.3661	1.3666	1.3542	-0.78%

Highest: 1.3666

Lowest: 1.3542

Difference: 0.0124

Average: 1.3556

Change %: -0.7831

B) Compute the difference between forward rate and spot rate. Is it a premium or discount at the beginning of year 2014 and 2015?

C) Use above results and information from question 1 to check if interest rate parity holds for year 2014 and 2015. Note: Interest Rate Parity explains relationship of relative interest rate and the forward premium or discount.

For intrest rate use the following data:

In the USA the federal average rate was averaged in 2014 and 2015 at 5.81%

In Poland the Interest rate in 2014 and in 2015 is 6.53%