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Assume: (1) the U.S. annual interest rate = 10%; (2) the Swiss annual interest rate = 4%; and (3) the 90-day forward rate for the
Assume: (1) the U.S. annual interest rate = 10%; (2) the Swiss annual interest rate = 4%; and (3) the 90-day forward rate for the SF = $.3864. At what current spot rate will interest rate parity (IRP) hold?| Assume the following: you have $10,000 to invest; the current spot rate of British pounds is $1.800; the 90- day forward rate of the pound is $1.780; the annual interest rate in the U.S. is 4%; the annual interest rate in the U.K. is 6%
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