The spot rate for the Chilean peso is USD/CLP 812.88. The 1-year interest rate in the U.S. is 5.10% and the 1-year interest rate in Chile is 8.92? What is the 1-year forward rate for the Chilean peso? A. USD/CLP 842.4252 B. USD/CLP 823.3401 C. USD/CLP 798.6490 D. USD/CLP 784.3710

The spot rate for the Chilean peso is USD/CLP 812.88. The 1-year interest rate in the U.S. is 5.10% and the 1-year interest rate in Chile is 8.92? What is the 1-year forward rate for the Chilean peso? A. USD/CLP 842.4252 B. USD/CLP 823.3401 C. USD/CLP 798.6490 D. USD/CLP 784.3710

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Finance

Section: Chapter Questions

Problem 2WNG

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Question

	A.	USD/CLP 842.4252
	B.	USD/CLP 823.3401
	C.	USD/CLP 798.6490
	D.	USD/CLP 784.3710

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