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Suppose the interest rate in the US is 12% per year and the interest rate...

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Accounting

Suppose the interest rate in the US is 12% per year and the interest rate in Switzerland is 8% per year, respectively. If the spot rate for Swiss franc is 0.4$ per Swiss franc. What is the half-year forward rate of Swiss franc and half-year forward rate of dollar?

Select one:

a. half-year forward rate of franc is 2.45 $ per Swiss franc half-year forward rate of dollar is 0.408 Swiss franc per dollar

b. half-year forward rate of franc is 0.408$ per Swiss franc half-year forward rate of dollar is 2.45 Swiss franc per dollar

c. half-year forward rate of franc is 2.6 $ per Swiss franc half-year forward rate of dollar is 0.416 Swiss franc per dollar

d. half-year forward rate of franc is 0.416 $ per Swiss franc half-year forward rate of dollar is 2.6 Swiss franc per dollar

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