question archive If the one-year interest rate is 4% on Swiss francs and 7% on U
If the one-year interest rate is 4% on Swiss francs and 7% on U
Subject:FinancePrice: Bought3
If the one-year interest rate is 4% on Swiss francs and 7%
on U.S. dollars, and the exchange rate is currently SFr 1 = $0.98, what does the International Fisher Effect suggest the spot rate will be in three years?
-If the one-year interest rate is 3% on Swiss francs and 5% on U.S. dollars, the exchange rate is currently SFr 1 = $0.96, and the expected spot rate in three years is SFr 1 = $1.10, what does the International Fisher Effect suggest the U.S. interest rate will become in 3 years?
