If Annualized Interest Rates in the U

question 16

Multiple Choice

If annualized interest rates in the U.S.and Switzerland are 10% and 4%,respectively,and the 90-day forward rate for the Swiss franc is $.3864,at what current spot rate will interest rate parity hold?

• A)$.3902
• B)$.3874
• C)$.3807
• D)$.3792

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Definitions:

Cognitive Development

encompasses the evolution of cognitive processes and abilities, such as thinking, reasoning, and problem-solving, through various stages of childhood into adulthood.

Disorderly

Characterized by a lack of order or organization; chaotic or unruly behavior.

Hypothetical

Refers to a proposed explanation or scenario based on conjecture rather than concrete evidence, often used as a starting point for further investigation.

Cognitive Development

The process through which individuals acquire and understand knowledge, develop thinking and problem-solving skills, and improve intellectual abilities across the lifespan.