here are two assignments for my online class that i would like help with. please respond with a quote as soon as possiblethanks

Assignment 1
Answer to 1:
Exchange rates: $2/£, $0.0075/¥, £0.005/¥
We derive cross rate
Cross rate: £/¥ = [1/($/£)]*($/¥] = (1/2)*0.0075 = 0.004
The direct rate: £0.005/¥
Since direct rate does not match with cross rate, an arbitrage opportunity exists.
The investors will first convert dollars in ¥ with exchange rate $0.0075/¥. Then it
would use direct rate i.e. £0.005/¥ to convert ¥ into £ and finally it would sell £
using rate $2/£ to get dollars. In this way, the investors would be able to make
arbitrage profits.
Answer to 2:
a. Current cost in Canadian dollar = £20000*[$/£ exchange rate] = 20000*2 =
$40000
b. We would indulge in future (forward) contract in order to hedge the currency
from this shock. The future (or forward) contract would allow us pay the money at
predetermined exchange rate.
c. In the case where forward rate could only be locked at $2.25/£,the first option is
pay the dues now in order to avoid any higher payment in future as a result of
fluctuation in exchange rate. But if we cannot pay the dues right now and if the
threat of dollar being traded at $2.5/£ is credible, then we should go into this
forward contract. This would help us in hedging out our currency against exchange
rate fluctuations.
Answer to 3:
Assuming perfect capital mobility: domestic interest rate (r) = foreign interest rate
(r*). Also assume that we are in flexible exchange rate regime.
a. Domestic exports are function of foreign income. So if foreign income increases,
domestic exports would rise, causing net exports to increase in the domestic
economy. As a result, IS curve would shift rightward (from IS1 to IS2), causing
both domestic income (from Y1 to Y2) and interest rate to increase (r1 to r2) in the
economy. Balance of payment would improve in this case.
But if look at the long run implication of such...