Answer & Explanation:Please answer the following questions1. Foreign Exchange Marketa. How is the Foreign Exchange Rate for a country Determined?b. Is the Foreign Exchange Market Efficient? What are its implications for Finance manager?2. Currency Swapsa. Illustrate using a specific example the advantages and challenges for participants engaged in a Cross Currency Swap.3. Interest Rates and Exchange Rates; Interest Rate Paritya. Illustrate the concept of Interest Rate Parity [IRP] and Covered Interest Arbitrage with a numerical example of your own.b. What is Currency Carry-Trade? Explain using your own example. What are the popular global carry-trade strategies? What are its inherent risks?c. What are the implications of IRP and Carry-Trade, for Foreign Exchange Market.?
