Problem $6\mathrm{.}3$

Currently, the spot exchange rate is $$\frac{1\mathrm{.}56}{}$ and the three$-$month forward exchange rate is $$\frac{1\mathrm{.}58}{}.$ The interest rate is $8$ percent per annum in the U$.$S$.$ and $5\mathrm{.}8$ percent per annum in the U$.$K$.$ Assume that you can borrow as much as $$1,560,000$ or $1,000,000.$

a$.$ Determine whether interest rate parity is currently holding.

Yes

No