is July 1, 1990. Suppose the spot rates for the pound, mark, and Swiss franc are $$.35, and $.40, respectively. The associated 90-day interest rates (annualized) are 16%, 8%, and 4%, while the U.S. 90-day interest rate (annualized) is 12%. What is the 90-day forward rate on an ACU (ACU 1 = £1 + DM1 + SFr1) if interest parity holds?
A) $2.0512
B) $2.1134
C) $2.0397
D) $2.0489

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The Answer of is July 1, 1990. Suppose the spot rates for the pound, mark, and Swiss franc are $$.35, and $.40, respectively. The associated 90-day interest rates (annualized) are 16%, 8%, and 4%, while the U.S. 90-day interest rate (annualized) is 12%. What is the 90-day forward rate on an ACU (ACU 1 = £1 + DM1 + SFr1) if interest parity holds?
A) $2.0512
B) $2.1134
C) $2.0397
D) $2.0489

Is July 1, 1990 $$35, and