Currency per U.S. $ U.K. Pound 0.5135 6-months forward (£) 0.5204 &

	Currency per U.S. $
U.K. Pound	0.5135
6-months forward (£)	0.5204
Japan Yen	108.21
6-months forward (¥)	106.96
Switzerland Franc	1.0492
6-months forward (SF)	1.0478

Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 6 percent.

What must the six-month risk-free rate be in Great Britain?

What must the six-month risk-free rate be in Japan?

What must the six-month risk-free rate be in Switzerland?

Expert Solution

jeff jeffy answered 1 year ago

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