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Charles Naidoo is a foreign exchange trader with Citibank. He notices the following quotes. Spot exchange rate CHF1.2051/US$ 1 year forward exchange rate CHF1.1922/US$ 1

Charles Naidoo is a foreign exchange trader with Citibank. He notices the following quotes. Spot exchange rate CHF1.2051/US$ 1 year forward exchange rate CHF1.1922/US$ 1 year US$ interest rate 1.25% per annum 1 year CHF interest rate 3.75% per annum 1.1 Is the interest rate parity holding? You may ignore transaction costs.

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