PROBLEM SET 04 PARITY CONDITIONS AND CURRENCY FORECASTING 1. Assume: (1) the U.S. annual interest rate =

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PROBLEM SET 04 PARITY CONDITIONS AND CURRENCY FORECASTING 1. Assume: (1) the U.S. annual interest rate = 10%; (2) the Swiss annual interest rate = 4%; and (3) the 90-day forward rate for the SF = $.38...

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PROBLEM SET 04 PARITY CONDITIONS AND CURRENCY FORECASTING 1. Assume: (1) the U.S. annual interest rate =

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