Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 1.3 percent. The six-month risk-free rate in Great Britain,
Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 1.3 percent. The six-month risk-free rate in Great Britain, Japan, and Switzerland must be percent, and percent, respectively percent (Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Currencies U.S.-dollar foreign-exchange rates in late New York trading VS Thurs in US$ per US$ in US$ per US$ Country/currency Americas Argentina peso Brazil real Canada dollar Chile peso Colombia peso 0005169 1934.50 0.2 Norway krone Ecuador US dollor Mexico peso Peru new sol Uruguay peso Venezuela b. fuerte Country/currency (%) (%) 1250 8.0001 22.7 Czech Rep. koruna 05050 19.800 -0.4 4476 2.2339 -5.4 Denmark krone 9126 1.0958 3.2 Euro area euro 1858 5.3816 -0.8 .3869 7210-0.9 004524 221.06 2.2 1683 5.9433-2.1 3306 3.0246 01 02807 35.620 8.2 1537 6.50681.1 1.1373 8793 1.5 1.1376 879 -1.6 1381 8786 -1.6 391 8779 -1.6 4749 2.1057 -2.0 6893 .5920 -2.0 16889 592 -2.0 1.6881 .5924 -2.0 .6867.5929 -2.0 001773 564.00 7.3 Hungary forint 1 unch Poland zlo 0767 13.0434 unch Russia ruble 3561 2.808 0.2 Sweden krona 04379 22.8355 7.8 Switzerland franc 157480 6.3500 unch 1-mos forward 3-mos forward 6-mos forward Asia-Pacific Australian dollar 9274 1.0783 -3.9 Turkey lira 9255 1.0805-4.0 UK pound 9216 1.0851 -4.0 1-mos forward 9157 1.0920 -3.9 3-mos forward 1598 6.2590 3.4 6-mos forward 1290 7.7528 unch 1-mos forward 3-mos forward 6-mos forward China yuan Hong Kong dollar India rupee Indonesia rupiah .0000865 11555 -5.0 Bahrain dinar Japan yen 1-mos forward 3-mos forward 6-mos forward Malaysia ringgit New Zealand dollar Pakistan rupee Philippines peso Singapore dollar South Korea won .0009682 1032.80-2.2 Taiwan dollar Thailand baht Vietnam dong 00004742 01663 60.150 -2.8 Middle East/Africa 2.6527 3770 unch 427 7.0081 0.8 2896 3.4528 -0.5 1.4123 .7081 0.1 3.5606 2809-0.6 Lebanon pound 0006596 1516.10 0.7 Saudi Arabia riyal2666 3.7507 unch 0953 10.4879 unch .2723 3.6731 unch 009773 102.32 -2.8 009775 102.31 -2.9 009778 102.27 -2.9 009784 102.21 -2.9 Egypt pound Israel shekel Jordan dinar Kuwait dinar 3062 3.2659 -0.5 8633 1.1584-4.8 01014 98.645 -6.4 South Africa rand 0224 44.610 0.5 UAE dirham 7982 1.2528 -0.8 Close Net Chg %ChgYTD% Chg 03305 30.256 1.1 WSJ Dollar Index 72.85-0.01-0.01-1.31 03090 32.3671.1 21090 -0.2 Sources: ICAP plc., WSJ Market Data Group
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started