Suppose the spot rates on Janurary 1,1992 for the pound,mark,and Swiss franc were $1.50,$.42,and $.48,respectively.At the time,the associated 90-day interest rates annualized were 12%,6%,and 4%,while the U.S.90-day interest rate annualized was 8%.What was the 90-day forward rate on a DCU DCU 1 = £1 + DM1 + SFr1 if interest parity were to hold?
A)$2.4027
B)$2.3923
C)$2.4196
D)$2.3738

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The Answer of Suppose the spot rates on Janurary 1,1992 for the pound,mark,and Swiss franc were $1.50,$.42,and $.48,respectively.At the time,the associated 90-day interest rates annualized were 12%,6%,and 4%,while the U.S.90-day interest rate annualized was 8%.What was the 90-day forward rate on a DCU DCU 1 = £1 + DM1 + SFr1 if interest parity were to hold?
A)$2.4027
B)$2.3923
C)$2.4196
D)$2.3738

Suppose the Spot Rates on Janurary 1,1992 for the Pound,mark,and