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Intro The current exchange rate between the dollar and the Swiss franc is $1.09 per...

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Intro The current exchange rate between the dollar and the Swiss franc is $1.09 per franc. Interest rates are 3.2% in the U.S. and 5.7% in Switzerland, for all maturities. The interest rates are quoted with continuous compounding. Part 1 Attempt 1/10 for 10 pts. What should be the forward price, i.e., the forward exchange rate, for delivery in 3 months (in dollars per franc)? 2+ decimals Submit Part 2 - Attempt 1/5 for 10 pts. If the actual forward price is $1.072 per franc, what could you do to benefit from this situation? Check all that apply: Borrow francs now and exchange them for dollars. Take a short position in the forward contract. Borrow dollars now and exchange them for francs. Take a long position in the forward contract. Submit Part 3 Attempt 1/10 for 10 pts. What will be your profit in 3 months if you borrow 9 million francs now (in $)? 0+ decimals Submit

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