Suppose that the one-year Swiss interest rate is 1% and the one-year U.K.interest rate is 11%.If the current spot rate is 0.75 Swiss franc per pound,what must the one-year forward rate SFr/pound be according to the approximate covered interest parity?
A) 0.675
B) 0.730
C) 0.770
D) 0.825
Correct Answer:
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