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Assume the following information: Mexican one-year interest rate = 9 % U.S. one-year interest rate = 4 % Peso spot rate = 0.11 $/p Peso

Assume the following information:

Mexican one-year interest rate = 9 %

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

Peso spot rate = 0.11 $/p

Peso forward rate = 0.08 $/p

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

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