Question
4. You are trying to decide whether to invest in the U.S. or Switzerland for the next 3 months. The spot rate is $.6667/CHF, the
4. You are trying to decide whether to invest in the U.S. or Switzerland for the next 3 months. The spot rate is $.6667/CHF, the 90-day forward is $.6756/CHF, and the annualized rates on the U.S. T-bill and Swiss government 3-month bonds are 10% and 4.5333%. Is it better to invest in the U.S. or Switzerland?
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
