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w Assume the following information Mexican one-year interest rate = 9 % U.S. one-year interest rate = 4 % Peso spot rate = 0.13 $/p
w Assume the following information Mexican one-year interest rate = 9 % U.S. one-year interest rate = 4 % Peso spot rate = 0.13 $/p Peso forward rate = 0.08 $/p If interest rate parity exists, how much money you can make per each unit. For example, if one can make $0.0303 per peso, type 0.0303 in the box below. w Assume the following information Mexican one-year interest rate = 9 % U.S. one-year interest rate = 4 % Peso spot rate = 0.13 $/p Peso forward rate = 0.08 $/p If interest rate parity exists, how much money you can make per each unit. For example, if one can make $0.0303 per peso, type 0.0303 in the box below
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