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Assume the following information: Mexican one-year interest rate = 11% U.S. one-year interest rate = 4% Peso spot rate = 0.11 $/p Peso forward rate

Assume the following information:

Mexican one-year interest rate = 11%

U.S. one-year interest rate = 4%

Peso spot rate = 0.11 $/p

Peso forward rate = 0.07 $/p

If interest rate parity exists, how much money can you make per each unit. For example, if one can make $0.0303 per peso, type 0.0303 in the box below.

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