foreign country: Switzerland foreign currency: Swiss Francs

Assessing Spot and Forward Rates 1. Review the data on forward and spot rates of your main foreign currency to determine whether the foreign currency typically exhibits a discount or a premium. Then review data on interest rates to compare the foreign country of concern and the U.S. interest rates. Does it appear that the forward rate of the foreign currency exhibits a premium (discount) when its interest rate is lower (higher than the U.S. interest rate, as suggested by interest rate parity