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Question 6 It is expected from the forward rate quotations that the Swiss franc will appreciate over the next 12 months. The bid-ask and other

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Question 6 "It is expected from the forward rate quotations that the Swiss franc will appreciate over the next 12 months. The bid-ask and other transaction quotes are: Spot rate is $0.9200 - $0.9300 per SF; 12 month Forward rate is $0.9370 - $0.9460 per SF; U.S. annualized interest rate is 3.2%-3.4% and Swiss annualized interest rate is 2.4% - 2.6%. Based on interest Rate Parity, if you can borrow SF 100,000, what is your gain or loss (rounded?" "Loss SF 6,614" "Gain SF 2,464" "LOSS SF 2,236" None of the given options

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