Question: A B D E F G H 3 Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 1.8

A B D E F G H 3 Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 1.8 percent. What must the six-month risk-free rate be in Great Britain? In Japan? In Switzerland? 4 5 6 7 8 N600 Spot rate for UK (/S) Forward rate for Great Britain Spot rate for Japan (W/$) Forward rate for Japan Spot rate for Switzerland (SFr/$) Forward rate for Switzerland U.S. risk-free rate 0.5920 0.5929 102.32 102.21 0.8793 0.8779 1.80% 10 11 12 13 14 15 16 Complete the following analysis. Do not hard code values in your calculations. 17 Great Britain Japan 18 19 20 21 22 Switzerland 23

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