The one-year forward rate for the Swiss franc is SF 1.1375 = $1.The spot rate is SF 1.1426 = $1.The interest rate on a risk-free asset in Switzerland is 3.3 percent.If interest rate parity exists,a one-year risk-free security in the U.S.is yielding _____ percent.
A) 2.28
B) 2.51
C) 2.98
D) 3.40
E) 3.76
Correct Answer:
Verified
Q56: The exchange rate is 1.14 Swiss francs
Q57: You just returned from a trip to
Q58: In New York,you can exchange $1 for
Q59: You can exchange $1 for either Can$1.2512
Q60: You are debating between spending a week
Q62: The spot rate on the Canadian dollar
Q63: A particular set of golf clubs in
Q64: Currently,you can exchange $100 for €97.25.The inflation
Q65: The one-year forward rate between the U.S.and
Q66: The current spot rate between the UK
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents