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Question
Suppose that the one-year U.S. interest rate is 8% and the one-year Swiss interest rate is 10%. If the current spot rate is $1.50 per Swiss franc, what must the one-year forward rate ($/SFr) be according to the approximate covered interest parity?
a. $1.47
b. $1.50
c. $1.53
d. $4.50
Answer
This answer is hidden. It contains 1 characters.
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