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Given the information: 4% 6% $0.80 Interest rate in US (Rh): Interest rate in Switzerland (Rf): The current spot rate for CHF (SRA): 1-year forward

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Given the information: 4% 6% $0.80 Interest rate in US (Rh): Interest rate in Switzerland (Rf): The current spot rate for CHF (SRA): 1-year forward rate for CHF (FR): $0.78 but for Interest Rate Parity to hold the forward premium on CHF would have to be The current forward premium on CHF is 2.56%: 1.92% -2.5%; 1.92% 2.56%: - 1.89% -2.5% -1.89%

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