Annualized Interest Rates on January 1, 1985 in the U

question 22

Multiple Choice

annualized interest rates on January 1, 1985 in the U.S. and France were 9% and 13%, respectively, and the spot value of the franc was $.1109, then at what 180?day forward rate would interest rate parity hold?

• A) $.1070
• B) $.1150
• C) $.1088
• D) $.1130

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