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Using the table below for spot and forward exchange rates, what should the six-month forward rate be for the Swiss franc if U.S. six-month interest
Using the table below for spot and forward exchange rates, what should the six-month forward rate be for the Swiss franc if U.S. six-month interest rates are 0.22 percent and Swiss six-month rates are 0.18 percent?
A. 1.0743
B. 0.9784
C. 1.0842
D. 1.0723
Exchange Rate Per U.S. $1 Swiss franc spot rate 1-month forward 3-month forward 6-month forward 0.9312 0.9307 0.9298 0.9284 U.K. pound spot rate 1-month forward 3-month forward 6-month forward 0.6541 0.6543 0.6547 0.6552Step by Step Solution
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