Question
The one-year risk-free rate in the U.S. is 2.260 percent and the one-year risk-free rate in Mexico is 3.78 percent. The one-year forward rate between
The one-year risk-free rate in the U.S. is 2.260 percent and the one-year risk-free rate in Mexico is 3.78 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.197/$. What is the spot exchange rate? Assume interest rate parity holds.
Multiple Choice
MXN14.858/$
MXN13.888/$
MXN12.378/$
MXN12.018/$
MXN12.197/$
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
978-0071051507
