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QUESTION 16 Assume the following information: Mexican one-year interest rate = 10% U.S. one year interest rate + 3% Peso spot rate = 0.14 Sip

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QUESTION 16 Assume the following information: Mexican one-year interest rate = 10% U.S. one year interest rate + 3% Peso spot rate = 0.14 Sip Peso forward rate=0.08 Sip If interest rate parity exists, how much money you can make per each unit. For example, if one can make $0.0303 per peso, type 0.0303 in the box below

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