Question: Use the data in Exhibit 21.5 to answer these questions: a. What is the six-month forward rate (in U.S. dollars) for Swiss francs? Is the

Use the data in Exhibit 21.5 to answer these questions:

a. What is the six-month forward rate (in U.S. dollars) for Swiss francs? Is the Swiss franc selling for a premium or a discount?

b. What is the six-month forward rate (in U.S. dollars) for the Japanese yen? Is the Japanese yen selling for a premium or a discount?

c. Given the information above, what do you think will happen to the value of the U.S. dollar relative to the Swiss franc and the Japanese yen?


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