Question
If the ratio of a direct quote between forward exchange rate and spot exchange rate of Mexican Peso to US Dollar is 0.95 and the
If the ratio of a "direct quote" between forward exchange rate and spot exchange rate of Mexican Peso to US Dollar is 0.95 and the nominal interest rate in the US Dollar is 4%, what is the nominal interest rate in Mexican Peso?
- A. -5.02%
- B. 1.99%
- C. 7.4%
- D. 8.2%
- E. 9.5%
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
