Question: Question 1 Assume the U . S . interest rate is 2 % higher than the Swiss rate, and the forward rate of the Swiss

Question 1
Assume the U.S. interest rate is 2% higher than the Swiss rate, and the forward rate of the Swiss franc has a 4% premium against USD.? Given this information:
U.S. investors who invest in Swiss covered with a forward contract earn a higher rate of return than if they invested in the U.S.
Swiss investors who invest in U.S. covered with a forward contract earn the higher rate of return as if
they invested in Switzerland.
Swiss investors who invest in Swiss earn a higher rate of return than if they invested in the U.S
covered with a forward contract.
Swiss investors who invest in U.S. covered with a forward contract earn the same rate of return as if
they invested in Switzerland.
U.S. investors who invest in Swiss covered with a forward contract earn a lower rate of return than if
they invested in the U.S.
US investors who invest in U.S. earn the same rate of return as if they invested in Switzerland covered
with a forward contract.
Question 1 Assume the U.S. interest rate is 2% higher than

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