This assignment requires you to evaluate two exchange rates on Yahoo Finance from 1/1/2012 through 1/1/2012; the CADCHF and the USDCHF.

Please click on the camera take a snapshot of your graph and save the image. Your graph will show you that between the time period of 2012 and 2013 both currency pairs were trading very close to parity (meaning 1-to-1).

One currency pair continued to trade at parity after 2013 while the other did not. Please explain in a paragraph (200 words) what parity implies economically and why the CHF has been able to maintain this parity in relation to the USD but not against the CAD.

Answer rating: 100% (QA)

Parity implies that two currencies are equal in value and can be exchanged for each other at a 1to1 ... View the full answer