Suppose That the One-Year U

question 4

Multiple Choice

Suppose that the one-year U.S.interest rate is 8% and the one-year Swiss interest rate is 10%.If the current spot rate is $1.50 per Swiss franc,what must the one-year forward rate $/SFr be according to the approximate covered interest parity?

• A) $1.47
• B) $1.50
• C) $1.53
• D) $4.50

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Definitions:

Multitasking

Performing multiple tasks simultaneously or switching between tasks quickly, often leading to decreased efficiency and productivity.

Metamemory

A person's understanding and consciousness of their own memory capacities and methods.

Preconventional Level

Kohlberg’s lowest level of moral development, in which moral reasoning is based on the physical consequences of an act; “right” is whatever avoids punishment or gains a reward.

Moral Reasoning

The process through which individuals make decisions about what is right and wrong, often influenced by cultural, societal, and personal values.