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Suppose the spot rates for the pound, mark, and Swiss franc are $1.20, $.32, and...

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Accounting

Suppose the spot rates for the pound, mark, and Swiss franc are $1.20, $.32, and $.40, respectively. The associated 90 day interest rates (annualized) are 16%, 8%, and 4%, while the U.S. 90 day interest rate is 12%. What is the 90 day forward rate (to the nearest cent) on a TCU (TCU 1 = 1 + DM1 + SFr1) if interest parity holds?

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