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Suppose we have the following exchange rate quotes: Spot rate 6-month forward rate Great Britain () .6262 .6266 Japan () 86.77 86.82 Switzerland (Fr) .9339
Suppose we have the following exchange rate quotes: |
Spot rate | 6-month forward rate | |
Great Britain () | .6262 | .6266 |
Japan () | 86.77 | 86.82 |
Switzerland (Fr) | .9339 | .9322 |
Assume interest rate parity holds, and the current six-month risk-free rate in the United States is 1.47 percent. The six-month risk-free rate in Great Britain, Japan, and Switzerland must bepercent,percent, andpercent, respectively.(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) |
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