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  3. 3. uncovered interest rate parity. data: i = 3%, i

3. Uncovered interest rate parity. data: i = 3%, i* = 1%, se = 1.4...

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3. Uncovered interest rate parity. data: i = 3%, i* = 1%, se = 1.4 ($ per ). You are given the following a) Write down the uncovered interest rate parity equilibrium relationship in its exact form. b) Write down the uncovered interest rate parity equilibrium relationship in its approximate form. c) Write down the expression for the equilibrium spot rate. d) Calculate the equilibrium spot rate given the above data. e) Show the equilibrium graphically. 3. Uncovered interest rate parity. data: i = 3%, i* = 1%, se = 1.4 ($ per ). You are given the following a) Write down the uncovered interest rate parity equilibrium relationship in its exact form. b) Write down the uncovered interest rate parity equilibrium relationship in its approximate form. c) Write down the expression for the equilibrium spot rate. d) Calculate the equilibrium spot rate given the above data. e) Show the equilibrium graphically

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