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Covered Interest Parity (3 points) Let's explore the exchange rate between Dreadfort (currency: Flay) and Castle Black (currency: Crow). This is from the Castle

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Covered Interest Parity (3 points) Let's explore the exchange rate between Dreadfort (currency: Flay) and Castle Black (currency: Crow). This is from the Castle Black perspective. Assume that covered parity holds and that: -The spot rate (e) was 13.5 from the Castle Black Perspective -The period is 90 days -Dreadfort's annual interest rate was 7% -Castle Black's annual interest rate was 4%. What would the forward rate be?

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