1. How is the notion of arbitrage linked to the law of one price?
2. What is the difference between real exchange rate and nominal counterpart?
3. What is "Purchasing Power Parity" (PPP)? What do we learn from the empircal evidence about PPP?
4. How arbitrage links goods prices and asset returns internationally?
5. What are the 5 key theoretical relationships among spot exchange rates, forward exchange rates, inflation rates, and interest rates due to international arbitraging?