Suppose the spot rates for the euro, pound sterling, and Swiss franc are $0.92, $1.13, and $0.38,
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Suppose the spot rates for the euro, pound sterling, and Swiss franc are $0.92, $1.13, and $0.38, respectively. The associated 90 day interest rates (annualized) are 8%, 16%, and 4%; the U.S. 90 day rate (annualized) is 12%. What is the 90 day forward rate on an ACU (ACU 1 = €1 + £1 + SFr 1) if interest parity holds?
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Jehal Shah
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Related Book For 
Foundations Of Multinational Financial Management
ISBN: 9780470128954
6th Edition
Authors: Alan C Shapiro, Atulya Sarin
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