Question
Assume the following information: Mexican one-year interest rate = 9% US one-year interest rate = 4% Peso spot rate = 0.13 $/p Peso forward rate
Assume the following information:
Mexican one-year interest rate = 9%
US one-year interest rate = 4%
Peso spot rate = 0.13 $/p
Peso forward rate = 0.08 $/p
If interest rate parity exists, how much money you can make per each unit.
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
