Assume the following information: 1-year deposit rate offered by U.S. banks = 12% 1-year deposit rate offered on Swiss francs = 10% 1-year forward rate of Swiss francs = $0.62 Spot rate of Swiss franc = $0.60 Does interest rate parity exists between the U.S. and Switzerland? Answer Yes because Swiss franc is trading at 3.33% premium which is as per the IRP No because Swiss franc is trading at 3.33% premium, and not 1.82% as per the IRP Yes because Swiss franc is trading at 3.23% discount which is as per the IRP No because Swiss franc is trading at 3.33% premium, and not 1.79% as per the IRP