Question
Current spot rate of CHF = $0.6543; Current 1-year forward rate for CHF = $0.6808; 1-year interest rate in the U.S. = 3.5%; 1-year interest
Current spot rate of CHF = $0.6543; Current 1-year forward rate for CHF = $0.6808; 1-year interest rate in the U.S. = 3.5%; 1-year interest rate in the Switzerland = 7.5%. If the spot rate of SF one year latter turn out to be $0.6400 then calculate uncovered rate of return from the Swiss point of view.
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
7th edition
978-0077616472, 77616472, 78034647, 978-0071314749, 71314741, 978-0078034640
