Question: Question 24 (5 points) Saved Assume that interest rate parity holds. The U.S. three-year interest rate is 6% annualized, and the Danish three-year interest rate

Question 24 (5 points)

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Assume that interest rate parity holds. The U.S. three-year interest rate is 6% annualized, and the Danish three-year interest rate is 9% annualized. Today's spot rate of the Danish krone is $.165. What is the approximate three-year forecast of the krones spot rate if the three-year forward rate is used as a forecast?

Question 24 options:

	$.152
	$.140
	$.131
	$.126
	$.174

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