Question
Consider a currency forward contract on the Swiss Franc. The spot exchange rate is U$1.02 per Swiss Franc (CHF). Presently the CHF interest rate is
Consider a currency forward contract on the Swiss Franc. The spot exchange rate is U$1.02 per Swiss Franc (CHF). Presently the CHF interest rate is 0.25% while the U$ interest rate is 2.25%. What is the fair 9-month forward price? Please show me the solution process, thank you
A. 1.0048 B. 1.0354 C. 1.0393 D. 1.0406
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
