You find yourself in a difficult position. Your CEO has asked you to help her rank these 6 agencies in terms of currency forecasting expertise. You obtain the following information from your departments for the Mexican Peso value for 180 days:

Current spot rate: $ 0.0795/MP (MP = Mexican Peso)

180-day forward rate: $ 0.0700/MP

180-day inflation rate in the US = 8%

180-day inflation rate in Mexico = 15%

Forecast of the 180-day rate from agency 1: $ 0.1800/MP

Forecast of the 180-day rate from agency 2: $ 0.1025/MP

Forecast of the 180-day rate from agency 3: $ 0.0515/MP

Forecast of the 180-day rate from agency 4: $ 0.0492/MP

Forecast of the 180-day rate from agency 5: $ 0.0399/MP

Forecast of the 180-day rate from agency 6: $ 0.0486/MP

The actual spot rate 180 days from now: $ 0.0612/MP

Part a): Can you rank the agencies in terms of their forecasting expertise?

Part b). What if the forward rate was biased and you had to use PPP rates to determine the synthetic forward? Calculate the new rankings based on this new information.