Suppose That the One-Year U

question 36

Multiple Choice

Suppose that the one-year U.S.interest rate is 13% and the one-year Swiss interest rate is 2%.If the current spot rate is $1.40 per Swiss franc,what must the one-year forward rate $/SFr be according to the approximate covered interest parity?

• A) 1.246
• B) 1.330
• C) 1.470
• D) 2.100

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Definitions:

Single-Blind Study

A research experiment in which only the participants are unaware of who is receiving the treatment or placebo to prevent bias.

Surgical Error

A preventable mistake made during surgery, which can result in complications or harm to the patient.

Case Study

A case study is a research method that involves an in-depth investigation of a single case or instance, often used in psychology, sociology, and other social sciences.

Physiological Changes

Alterations in the body's normal biological function or structure that occur as a result of aging, disease, or environmental factors.