Question
The one-year forward rate for the Swiss franc is SF1.1505/$. The spot rate is SF1.1626/$. The interest rate on a risk-free asset in Switzerland is
The one-year forward rate for the Swiss franc is SF1.1505/$. The spot rate is SF1.1626/$. The interest rate on a risk-free asset in Switzerland is 2.71 percent. If interest rate parity exists, what is the one-year risk-free rate in the U.S.?
Multiple Choice
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1.64%
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3.32%
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3.55%
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3.03%
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3.79%
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
