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Use the information below to answer the following questions. Currency per U.S. $ U.K. Pound 0.5135 6-months forward () 0.5204 Japan Yen 108.21 6-months forward
| Use the information below to answer the following questions.
|
| Currency per U.S. $ | |
|---|---|
| U.K. Pound | 0.5135 |
| 6-months forward () | 0.5204 |
| Japan Yen | 108.21 |
| 6-months forward () | 106.96 |
| Switzerland Franc | 1.0492 |
| 6-months forward (SF) | 1.0478 |
| Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 5.3 percent. |
| What must the six-month risk-free rate be in Great Britain? |
|
|
| What must the six-month risk-free rate be in Japan? |
|
|
| What must the six-month risk-free rate be in Switzerland? |
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International Trade Finance
Authors: Indian Institute Of Banking & Finance
1st Edition
9386394723, 978-9386394729
