A.1) The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are .01 and .03 respectively. Swiss franc. What kind of arbitrage will induce a profit for you, if the forward rate is .96 Swiss francs equal $1? Assume you start with $1 million.

you need to elaborate on the meaning of interest parity theory, purchasing power parity and international fished effect. Specifically, you need to talk about what those theories state generally, and also what they denote for these particular problems.