Assume interest rate parity holds and the current six-month


Suppose we have the following exchange rate quotes:

Great Britain (£): Spot rate .6249; 6-month forward rate .6252.

Japan (¥): Spot rate 86.65; 6-month forward rate 86.78.

Switzerland (Fr): Spot rate 9303; 6-month forward rate .9286.

Assume interest rate parity holds, and the current six-month risk-free rate in the United States is 1.43 percent. The six-month risk-free rate in Great Britain, Japan, and Switzerland must be ___percent, ___percent, and ___percent, respectively.

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Financial Management: Assume interest rate parity holds and the current six-month
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