Question
Suppose you check the spot and 6-month forward rates for the #Mexican Peso (MXN)/Swiss franc (CHF) exchange rates and observe: S(#MXN/CHF) = MXN 22.10/CHF F
Suppose you check the spot and 6-month forward rates for the #Mexican Peso (MXN)/Swiss franc (CHF) exchange rates and observe:
S(#MXN/CHF) = MXN 22.10/CHF
F6mo (#MXN/CHF) = MXN 22.80/CHF
These spot and forward exchange rate quotes above suggest the Mexican peso is trading at an annualized forward _____________ relative to the Swiss franc equal to approximately _____________________.
A. Discount; 3.2%
B.discount; 6.3%
C.premium; 6.3%
D.premium; 3.2%
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The Doctrine Of Equivalents Or An Explanation Of The Nature Value And Power Of Money
Authors: George Craufurd
1st Edition
054833952X, 9780548339527
