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Assume the following information Mexican one-year interest rate = 8 % U.S. one-year interest rate - 4 % Peso spot rate -0.14 Sp Peso forward
Assume the following information Mexican one-year interest rate = 8 % U.S. one-year interest rate - 4 % Peso spot rate -0.14 Sp Peso forward rate=007 S/P If interest rate parity exists how much money you can make per each unit. For example, if one can make 50 0303 per peso, type 0.0303 in the box below
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