Suppose 1 mexican peso equals 0041 us dollars in the spot, Ask an Expert

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Suppose 1 Mexican Peso equals 0.041 US dollars in the spot market. 6-month Mexican government debt ha an annualized return of 0.072 (and thus a 6-month periodic return of {rm/2}). 6-month U.S. government debt has an annualized return of 0.04 and a periodic return of {rd/2}. If interest rate parity holds, what is the value of 1 Mexican Peso in US dollars U.S. in the 180-day forward market?

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Financial Management, Finance

Category:- Financial Management
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