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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
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/)
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