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answer choices: 4.40 3.98 4.21 4.31 5.39 Assume the one-year forward rate for the Swiss franc is SF.9556 = $1. The spot rate is SF.9702
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Assume the one-year forward rate for the Swiss franc is SF.9556 = $1. The spot rate is SF.9702 =$1. The interest rate on a risk-free asset in Switzerland is 3.8 percent. If interest rate parity exists, a one-year risk-free security in the U.S. is yielding percent 4.40
3.98
4.21
4.31
5.39
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