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Does the interest rate parity hold in each of the following cases? In case it does not hold, calculate the risk premium.
N. Rt = 8, = 3, Et = 5,
= 7
O. Rt = 7, = 4, Et = 6,
= 8
P. Rt = 6, = 5, Et = 5,
= 7
Q. Rt = 5, = 4, Et = 6,
= 8
R. Rt = 8, = 6, Et = 5,
= 7
S. Rt = 7, = 5, Et = 6,
= 8
T. Rt = 6, = 4, Et = 5,
= 7
U. Rt = 5, = 3, Et = 6,
= 8
V. Rt = 8, = 5, Et = 6,
= 8
W. Rt = 7, = 3, Et = 8,
= 9
X. Rt = 6, = 7, Et = 7,
= 8
Y. Rt = 5, = 6, Et = 5,
= 9
Z. Rt = 4, = 3, Et = 5,
= 10
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