The Following Information Is Provided to You What Is the One-Year Interest Rate for Swiss Franc?
A)2

question 106

Multiple Choice

The following information is provided to you: $$\begin{array} { | l | l | } \hline \text { Spot exchange rate for Swiss franc } & = \$ 0.61 ( \mathrm { U } . ) / \mathrm { Sfr } \\\hline \text { One-year forward rate for Swiss frane } & = \$ 0.63 ( \mathrm { U } . ) / \mathrm { Sfr } \\\hline \text { One-year U.S. interest rate } & = 5 \% \\\hline\end{array}$$ What is the one-year interest rate for Swiss franc?

• A)2.00%
• B)1.67%
• C)1.50%
• D)1.33%

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