Financial Risk Manager Part 1

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Explanation:

With the quote expressed as CHF per EUR, IRP is:

F = S e^{(r_{EUR}-r_{CHF})T}

Solve for the spot rate $S$ :

S = F e^{-(r_{EUR}-r_{CHF})T}

Given:

S = 1.300 \times e^{-(0.02-0.005)\cdot 3} = 1.300 \times e^{-0.045} \approx 1.243

The closest option is B.

Explanation:

With the quote expressed as CHF per EUR, IRP is:

F = S e^{(r_{EUR}-r_{CHF})T}

Solve for the spot rate $S$ :

S = F e^{-(r_{EUR}-r_{CHF})T}

Given:

S = 1.300 \times e^{-(0.02-0.005)\cdot 3} = 1.300 \times e^{-0.045} \approx 1.243

The closest option is B.

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MManit

Last updated: April 18, 2026 at 11:32

a) 1.180 EUR/CHF (1.180 CHF per EUR)

33.3%

b) 1.240 EUR/CHF

33.3%

c) 1.300 EUR/CHF

d) 1.360 EUR/CHF

33.3%