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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...

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Finance

Currency per U.S. $
  U.K. Pound0.5135             
  6-months forward (£)0.5204             
  Japan Yen108.21             
  6-months forward (¥)106.96             
  Switzerland Franc1.0492             
  6-months forward (SF)1.0478             
Suppose interest rate parity holds, and the current six-monthrisk-free rate in the United States is 6 percent.
What must the six-month risk-free rate be in GreatBritain?
What must the six-month risk-free rate be in Japan?
What must the six-month risk-free rate be in Switzerland?

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Currency per U.S. $  U.K. Pound0.5135               6-months forward (£)0.5204               Japan Yen108.21               6-months forward (¥)106.96               Switzerland Franc1.0492               6-months forward (SF)1.0478             Suppose interest rate parity holds, and the current six-monthrisk-free rate in the United States is 6 percent.What must the six-month risk-free rate be in GreatBritain?What must the six-month risk-free rate be in Japan?What must the six-month risk-free rate be in Switzerland?

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