The one-year risk-free rate in the U.S. is 4.50 percent and the one-year risk-free rate in Mexico

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The one-year risk-free rate in the U.S. is 4.50 percent and the one-year risk-free rate in Mexico is 6.86 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.38/$. What is the spot exchange rate? Assume interest rate parity holds.

Posted Date: May 19, 2024 10:16 PM

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The one-year risk-free rate in the U.S. is 4.50 percent and the one-year risk-free rate in Mexico

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