Assume that the U.S. and Chile nominal interest rates are eq…

Assume that the U.S. and Chile nominal interest rates are equal. Then, the U.S. nominal interest rate decreases while the Chilean nominal interest rate remains stable. According to the international Fisher effect, this implies expectations of ____ than before, and that the Chilean peso should ____ against the dollar.

Andrea is an option speculator. She anticipates the Canadian…

Andrea is an option speculator. She anticipates the Canadian dollar to depreciate from its current level of $0.90 to $0.84. Currently, Canadian dollar call options are available with an exercise price of $0.91 and a premium of $0.02. Also, Canadian dollar put options are available with an exercise price of $0.89 and a premium of $0.02. If Andrea plans to purchase or sell the option with the highest expected profit, what is Andrea’s expected profit or loss per unit?