Suppose that the six$-$month interest rate in the United States is $1\%,$ while the six$-$month interest rate in Mexico is $3\%.$ Further, assume the spot rate

of the peso is $$0\mathrm{.}25.$

Given the spot rate of $$0\mathrm{.}25$ of the peso, as well as the premium of $-1\mathrm{.}9417\%$ that you calculated previously, the six month forward

should be about under IRP.

TOTAL SCORE: $0/5$

$($to complete this step and unlock the next step$)$