Question
The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $0.47. The following interest rates exist: U.S. Switzerland
The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $0.47. The following interest rates exist:
U.S. Switzerland
360day borrowing rate 0.06 .05
360day deposit rate .06 0.02
You need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
