1 the us risk-free interest rate is 18 per year and the, Ask an Expert

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1. The U.S. risk-free interest rate is 1.8% per year and the Swiss risk-free interest rate is 0.7% per year. If the spot exchange rate is SF1.65 per U.S. dollar and interest rate parity holds, what is the one-year forward exchange rate in francs per dollar?

1) SF0.85

2) SF1.44

3) SF0.74

4) SF0.61

5) SF1.63

2. The spot exchange rate is $1.51 per British pound. If the dollar appreciates by 10%, how many dollars would be required to buy a pound?

1) $1.359

2) $1.661

3) $1.564

4) $1.433

5) $1.711

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92714722

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