Question: The one-year risk-free rate in the U.S. is 4.020 percent and the one-year risk-free rate in Mexico is 6.20 percent. The one-year forward rate between

The one-year risk-free rate in the U.S. is 4.020 percent and the one-year risk-free rate in Mexico is 6.20 percent. The one-year forward rate between the

Mexican peso and the U.S. dollar is MXN12.340/$. What is the spot exchange rate? Assume interest rate parity holds.

The one-year risk-free rate in the U.S. is 4.020 percent and the one-year risk-free rate in Mexico is 6.20 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.340/\$. What is the spot exchange rate? Assume interest rate. parity holds. Multple Choice MXNI4.927/5 MXN12.340/5 MxNi2.599/5 MXNN12.087is MXNN13.957/5

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