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As a U.S. investor, I decide to invest in Swiss francs (SF) for one year at 7.40%. Similar investments in U.S. yield 6.30%. What does

As a U.S. investor, I decide to invest in Swiss francs (SF) for one year at 7.40%. Similar investments in U.S. yield 6.30%. What does the market expect Swiss franc to do?

a.

none of the other answers

b.

appreciate 13.70%

c.

depreciate 1.83%

d.

appreciate 1.02%

e.

depreciate 1.02%

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