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Suppose that the six-month interest rate in the United States is 6%, while the six-month interest rate in Mexico is 10%. Further, assume the spot

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Suppose that the six-month interest rate in the United States is 6%, while the six-month interest rate in Mexico is 10%. Further, assume the spot rate of the peso is $0.20. (not According to interest rate parity (IRP), the forward rate premium of the peso with respect to the U.S. dollar should be annualized). -3.6364% -4.3636% -2.9091% -4.7273%

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