4. Suppose that the price of the Swiss franc is 0.60. If the one-year Swiss interest...
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4. Suppose that the price of the Swiss franc is 0.60. If the one-year Swiss interest rate is 4% and the euro interest rate is 7%, what should be the one-year forward price of the Swiss franc? 1 point The economists at DRI Ltd. have recently forecasted Jamaican inflation rate of 9.5 percent over the coming year. In their world economic outlook report, they have forecasted an inflation rate of 2.1 percent in the USA over the coming year. The current spot rate of exchange for the US dollar is $85.82. If purchasing power parity (PPP) holds, what would your forecast be for the Jamaican dollar value of the US$ in one year? 1 point 4. Suppose that the price of the Swiss franc is 0.60. If the one-year Swiss interest rate is 4% and the euro interest rate is 7%, what should be the one-year forward price of the Swiss franc? 1 point The economists at DRI Ltd. have recently forecasted Jamaican inflation rate of 9.5 percent over the coming year. In their world economic outlook report, they have forecasted an inflation rate of 2.1 percent in the USA over the coming year. The current spot rate of exchange for the US dollar is $85.82. If purchasing power parity (PPP) holds, what would your forecast be for the Jamaican dollar value of the US$ in one year? 1 point
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