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The forward rate of the swiss franc is 50 the spot rate of


The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $0.46. The following interest rates exist:

U.S. Switzerland

360-day borrowing rate 0.05 .05

360-day deposit rate .06 0.02

You need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:

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Finance Basics: The forward rate of the swiss franc is 50 the spot rate of
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