Question
The US 1 year spot rate is 2.94% and the Swiss 1 year spot rate is 5.02%. The current exchange rate for the Swiss frank
The US 1 year spot rate is 2.94% and the Swiss 1 year spot rate is 5.02%. The current exchange rate for the Swiss frank is 1.12 USD/CHF (where USD is the currency code for US dollar, and CHF is the currency code for the Swiss frank).
According to interest rate parity, what should be the approximate expected USD/CHF exchange rate in one year?
Correct Answer: 1.1
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The Psychology Of Trading Tools And Techniques For Minding The Markets
Authors: Brett N. Steenbarger
1st Edition
0471267619, 9780471267614
