3. If the spot rate is 1 FC ¼ $0.740 and the 90-day forward rate is $0.752, what does this suggest about interest rates in the two countries? 4. Explain why a weak dollar relative to the FC would...

3. If the spot rate is 1 FC ¼ $0.740 and the 90-day forward rate is $0.752, what does this suggest about interest rates in the two countries?

4. Explain why a weak dollar relative to the FC would likely increase U.S. exports.

5. Discuss what would happen to the forward rate if the dollar strengthened relative to the FC.