Interest parity: The current edition of the Financial Times provides the following information: The current EUR / CHF exchange rate is 1.28. The interest rate for 1-year investments in EUR is currently 1.64% p. a., that in CHF 0.52% p. a .. You are now going to a bank and want to conclude a forward exchange deal in a year's time. (Sale CHF - purchase EUR). 

What course will the bank advisor give you for this transaction (assumption: free of charge)?

Answer rating: 100% (QA)

In this case you want to sell CHF and purchase EUR so youll be entering into a forward exchange deal ... View the full answer