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Consider a U.S.-based company that exports goods to Switzerland. The U.S. company expects to receive a payment of 50,000 Swiss Franc (CHF) on a shipment

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Consider a U.S.-based company that exports goods to Switzerland. The U.S. company expects to receive a payment of 50,000 Swiss Franc (CHF) on a shipment of goods in 6 months' time. The U.S. interest rate is 2% p.a., and the Swiss interest rate is 4% p.a. Assume that the current spot rate is CHF0.96/USD. What would be the 6-month CHF/USD forward rate that is consistent with interest rate parity (IRP)? CHF0.95/USD CHF0.97/USD CHF0.98/USD CHF0.94/USD

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