What should spot price for the us dollar to the swiss franc

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Reference no: EM131325234

The spot rate for the Swiss franc (CHF) in New York is USD0.55.

(a) What should the spot price for the US dollar to the Swiss franc be in Zurich?

(b) Should the dollar be quoted at CHF1.85 in Zurich, how would the market react?

Reference no: EM131325234

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