1. If the spot market exchange rate for the Indian rupee is 64.85, the expected inflation rate for India for the next six months is 5.05%, and the expected inflation rate for the US for the six months is 2.15%, what is the expected exchange rate for the Indian rupee in six months?
2. The following extracts are from Ben's financial statement: Profit before interst and tax- $10,200 Interest - $(1600); Tax - $(3300); Profit after tax- $5300; Share capital - $20,000; Reserves - $15,600 = 35,600; Loan liability - $6900 = $42,500 What is Ben's return on capital employed?
3. If the spot market exchange rate for the Australian dollar is 0.7851, the 3-month Reserve Bank of Australia interest rate is 1.99%, and the 3-month interest rate on US Treasury debt is 1.35%, what is the expected exchange rate for the Australian dollar in three months?