The expected exchange rate in one year

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Reference no: EM132072697

Here are some statistics:

GBP Inflation (annual rate) 10%

One-year GBP interest rate 12%

CHF Inflation (annual rate) 4%

Spot exchange rate (CHF/GBP) 3.00 Expected exchange rate in one year (CHF/GBP) ?

Based on the international parity relations, calculate: (a) one-year CHF interest rate (b) the expected exchange rate in one year (CHF/£)

Reference no: EM132072697

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