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Forward rate for mxp for usd

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Reference no: EM133062221

The Spot Rate (S0) for Mexican Pesos (MXP) for US dollars (USD) is MXP 20.5 to USD 1. The riskless rate of interest in the US for 3 months (RUS) is 0.25%. The riskness rate in Mexico (Foreign Country) is 1.6%.

According to the Covered Interest Rate Parity relationship, what should be the 3-month Forward rate (F) of MXP for USD? (Note: Your answer should be the number of MXP for USD 1 in the 3-month Forward rate for MXP for USD.)

Reference no: EM133062221

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