Question
4.25If annualized interest rates in the U.S. and Switzerland are 10% and 4%, respectively, and the 90day forward rate for the Swiss franc is $.3864,
4.25If annualized interest rates in the U.S. and Switzerland are 10% and 4%, respectively, and the 90day forward rate for the Swiss franc is $.3864, at what current spot rate will interest rate parity hold?
a)$.3902
b)$.3874
c)$.3807
d)$.3792
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
