Question: how do we get these? IRP between the US and Mexico (currency code MXN for Mexican peso) Suppose: S0=10MXN/$ius=5% and iMexico=3% A. According to IRP,

how do we get these? IRP between the US and Mexico

how do we get these?

IRP between the US and Mexico (currency code MXN for Mexican peso) Suppose: S0=10MXN/$ius=5% and iMexico=3% A. According to IRP, this suggests what about the forward discount/premium on the dollar? Forwardrate=MXN9.8/$ B. Under the current rates, $1000 invested for a year in the U.S. would be worth how much in a year

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