Question: Question 10 (Mandatory) (1 point) Estimate the difference between short-term interest rates in Switzerland and the U.S. in May 2016. The USD per CHF (CHF/USD)

Question 10 (Mandatory) (1 point) Estimate the difference between short-term interest

Question 10 (Mandatory) (1 point) Estimate the difference between short-term interest rates in Switzerland and the U.S. in May 2016. The USD per CHF (CHF/USD) Futures prices were as follows: Jun 2016: 1.05060 Sep 2016: 1.05485 Assuming there are 3 months exactly between these two Futures expiry dates, what interest rate differential between U.S. and Swiss short-term risk-free interest rates is implied by these Futures quotes? The US risk-free rate was higher than the Swiss rate by about 40.5 basis points The Swiss risk-free rate was higher than the US rate by about 0.425% The Swiss risk-free rate was lower than the US rate by about 1.6296 The Swiss risk-free rate was lower than the US rate by about 2.17%

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