Physics homework help

Suppose that a US interest rate  is 4% and the forward premium for the Korean won is 1%. What is the interest  rate in the Korean market? (Assume that the US is home)A currency trader observes that in the spot exchange market, one U.S. dollar can be exchanged for 12.55 Mexican pesos or for 5.36 Danish krone. What is the cross-exchange rate between the peso and the krone; that is, how many krones would you receive for every peso exchanged?Part 1Interest Rate in Korean Market = Interest rate in US + Forward risk premiumInterest rate in US = 4%Forward premium for Korean won = 1%Interest Rate in Korean Market = 4% + 1% = 5% Part 2…