Question: The one-year risk-free rate in the U.S. is 4.660 percent and the one-year risk-free rate in Mexico is 7.08 percent. The one-year forward rate between

The one-year risk-free rate in the U.S. is 4.660 percent and

The one-year risk-free rate in the U.S. is 4.660 percent and the one-year risk-free rate in Mexico is 7.08 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.392/\$. What is the spot exchange rate? Assume interest rate parity holds. Multiple Choice MXN12.679/$ MXN13.982/$ MXN12.112/$ MXN14.952/\$ MXN12.392/\$

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