Select any three spot rates(either buy or sell) that occured in jan or
feb 04. Assume a home currency of this rate and clearly identify the
home currency in the quoted rates.

1. Using the three individual spot rates . forecast the future spot
rate expected to occur in 6 months time from the date of each spot
rate using the parity conditions. (you may use any set of currencies
but you must clearly identify the source of information related to all
variables)

- Purchasing power parity
- *Interest rate parity
- International fisher effect
and forward rate as an un biased predictor.

2. Compare the forecasted six month future spot rate with actual spot
rate that observed on the forecasted date by computing the forecasting
error under each parity condition.

3.Identify 5 seperate factors that you believeto have influenced the
value of your assumed home currency during the period from jan to june
2004.(1200 Words)

As a finance student, the first thing to learn is how to price assets
because if you underprice them then . . .

I wonder if the whole question is worth 1,200 words, or only the
fifth. In any case, here's a little math:
$9.75 (the fortune a research would make of such an answer) / 1,200 =
$0.008125 per word.

However, in Yen it sounds better: 0.909146 JPY and in Lebanese Pounds
it is already quiet a fortune: 12.3354 LBP
(SOURCE: www.xe.com).

Woooha, should have look more! 

It is 271.550 ROL! (which is Romanian Lei. Good for crooswords, this one)

Can't beat that, could you?