Suppose the spot rates for the pound,mark,and Swiss franc prior to 1999 were $1.20,$.32,and $.40,respectively.At the same time,the associated 90-day interest rates annualized)were 16%,8%,and 4%,while the U.S.90-day interest rate was 12%.What was the 90-day forward rate to the nearest cent on a TCU TCU 1 = £1 + DM1 + SFr1 if interest parity were to hold?
A)$1.92
B)$1.98
C)$1.94
D)$1.87

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The Answer of Suppose the spot rates for the pound,mark,and Swiss franc prior to 1999 were $1.20,$.32,and $.40,respectively.At the same time,the associated 90-day interest rates annualized)were 16%,8%,and 4%,while the U.S.90-day interest rate was 12%.What was the 90-day forward rate to the nearest cent on a TCU TCU 1 = £1 + DM1 + SFr1 if interest parity were to hold?
A)$1.92
B)$1.98
C)$1.94
D)$1.87

Suppose the Spot Rates for the Pound,mark,and Swiss Franc Prior