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Given the information: Interest rate in US (Rh): Interest rate in Switzerland (RF): The current spot rate for CHF (SRA): 1-year forward rate for CHF
Given the information: Interest rate in US (Rh): Interest rate in Switzerland (RF): The current spot rate for CHF (SRA): 1-year forward rate for CHF (FR): 4% 6% $0.80 $0.78 Trading based on covered interest arbitrage will cause Upward pressure on Rh. Downward pressure on the CHF's SR. Downward pressure on Rf. Downward pressure on the CHF's FR
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Financial Ratio Analysis
Authors: Andrew P.C.
1st Edition
1973493381, 978-1973493389
