You Have the Following Information $\begin{array}{ll}\text { today's spot } & \$ .6850 / \mathrm{CS} \\6 \text { months forward rate } & \$ .7100 / \mathrm{C \$}\end{array}$

question 23

Essay

You have the following information:
$\begin{array}{ll}\text { today's spot } & \$ .6850 / \mathrm{CS} \\6 \text { months forward rate } & \$ .7100 / \mathrm{C \$}\end{array}$
expected inflation rate in the U.S.: $4 \%$ p.a.
expected inflation rate in Canada: $2 \%$ p.a.
nominal interest rate in the U.S: $6 \%$ p.a. You are asked to forecast the spot exchange rate between the Canadian dollar and the U.S.dollar in six months.
a)What is your forecast based on purchasing power parity?
b)What is your forecast based on the forward expectations parity?
c)Based on the Fisher effect,what should be the real interest rate in Canada?
d)Why are the two forecasts in a and b different?

Debate the fairness and effectiveness of the social stratification system.

Understand the core concepts of psychoanalytic theory, including defense mechanisms and psychosexual stages.

Identify and describe Sigmund Freud's contributions and limitations to psychology.

Comprehend the concept of unconscious processes and their manifestations in behavior and dream interpretation.

---

Definitions:

Technical Terminology

Specialized or industry-specific vocabulary used by professionals to communicate precisely in their field of expertise.

Summary

A concise statement or overview that captures the essential points of a text or speech.

Benefits

Advantages or favorable outcomes resulting from actions or conditions.

Proposals

Documents or presentations that offer a plan or suggestion for consideration or discussion by others, especially in a professional or business context.