This homework assignment analyzes exchange rates within the context of the FIN5IFM course, focusing on the benefits and drawbacks of the Euro for European Union members, particularly referencing the Greek financial crisis. It explores the advantages of a single currency, the risks associated with it, and provides a recommendation regarding the Euro's maintenance. The assignment also covers practical calculations related to currency arbitrage, spot and forward rates, and the differences between forward and futures contracts, including mark-to-market examples. The solution provides detailed answers to all questions, demonstrating an understanding of key concepts in international finance and currency markets, including the implications of pegged and floating exchange rate regimes and currency devaluation.