Assume the following direct exchange rate of the Swiss franc and Argentine peso at the beginning of each of the last 7 years
a. Suppose you forecast that the Swiss franc will appreciate by 3 percent over the next year, but you realize that there is much uncertainty surrounding your forecast. Use the value-at-risk method to estimate (based on a 95 percent confidence level) the maximum level of depreciation in the Swiss franc over the next year, based on the data you were provided.
b. Assume that you forecast that the Argentine peso will depreciate by 2 percent over the next year but realize there is much uncertainty surrounding your forecast. Use the value-at-risk method to estimate (based on a 95 percent confidence level) the maximum level of depreciation in the Argentine peso over the next year, based on the data you were provided.