Question 7 3 points ICLO 4) Park Co. export textiles to Europe. It expects to receive 500.000 euros in one year. The company does not hedre future transactions. It believes in purchasing power party (PPP. expects Inflation over the next year to be 10 in countries using the euro and in the U.S. The current spot rate of the euro is $133, and the one year forward rate is 137 A) Determine the expected spot rate of the euro in one ylar with respect to the US dollar? Show your work. (1 mark) The current spot rate of the Hong Kong dollar is possed at 8.14, and it is believed that the peg will remain unchanged for the next year. Park Co prefers to convert its 900.000 euros into Hong Kong dollars at the end of one year. How much Hong Kong dollars will Park Co, receive in one year for its euro receivables? (2 marks)