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Chapter 17: International Financial Management 16. If the ratio between direct quote of forward divided by spot exchange rates of US $ over Mexican Peso

Chapter 17: International Financial Management 16. If the ratio between direct quote of forward divided by spot exchange rates of US $ over Mexican Peso is 0.95 and the interest rate in the US is 2%, then the interest rate in Mexico is expected to be: A) 1.2% B) 6.3% C) 7.4% D) 8.2% E) 9.5% F) None of the aboxe (state vour answer)

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