a. calculate and interpret the bid-ask spread on a spot or forward foreign currency quotation and describe the factors that affect the bid-offer spread;

b. identify a triangular arbitrage opportunity and calculate its profit, given the bid-offer quotations for three currencies;

e. explain international parity relations (covered and uncovered interest rate parity, purchasing power parity, and the international Fisher effect);

f. describe relations among the international parity conditions;

g. evaluate the use of the current spot rate, the forward rate, purchasing power parity, and uncovered interest parity to forecast future spot exchange rates;

h. explain approaches to assessing the long-run fair value of an exchange rate;