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Suppose That the One-Year Swiss Interest Rate Is 1% and the One-Year

question 39

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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?

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Definitions:

Organizational Culture

The collective values, norms, and beliefs that shape the thoughts, feelings, and actions of staff members in a company.

Social Prescriptions

Norms or expectations within a society that dictate acceptable behavior in various situations.

Strong Organizational Culture

An organization where the core values are intensely held and widely shared among all members, leading to high commitment and consistency in behavior.

Dominant Values

The core beliefs and principles that are widely shared and deeply held within a society or organization.

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