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Suppose we have the following exchange rate quotes: Spot rate 6-month forward rate Great Britain () .6274 .6278 Japan () 86.89 87.13 Switzerland (Fr) .9375
Suppose we have the following exchange rate quotes: |
Spot rate | 6-month forward rate | |
Great Britain () | .6274 | .6278 |
Japan () | 86.89 | 87.13 |
Switzerland (Fr) | .9375 | .9358 |
Assume interest rate parity holds, and the current six-month risk-free rate in the United States is 1.51 percent. The six-month risk-free rate in Great Britain, Japan, and Switzerland must be percent, percent, and percent, respectively. |
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