The one-year risk-free rate in the U.S. is 2.74 percent and the one-year risk-free rate in Mexico is 4.44 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.24/$. What is the spot exchange rate? Assume interest rate parity holds.

MXN12.438/$

MXN12.037/$

MXN14.877/$

MXN13.907/$

MXN12.236/$

IT IS NOT THIS: forward rate/spot rate=(1+domestic rate)/(1+foreign rate)

IF YOU DO THIS, YOU ARE GETTING A DOWNVOTE INSTANTLY.