in part A), how do you know where to put the 1.05 swiss int rate and the 1.06 US rate? Same problem in B) how do you know where to put each rate? Thanks.
not to sound too simplistic…but that is the formula. It is giving you a direct quote for USD, so USD is your domestic currency rate (DC). S x (1+DC/1+FC) Sometimes I just find it easier to memorize a formula than trying to reason through it.