If the inflation rate per annum in America is 5 %, while in British 15 %, then how will the exchange rate between pound and dollar change? If the interest rate per annum in America and Switzerland are respectively 10% and 4%, and the spot rate is 0.3864$/SF. If the Interest Rate Parity condition is satisfied, then what is the 90-days forward rate? If the quotation of 90-days forward rate is 0.3902$/SF, then does there exist arbitrage chance? If it does, then how to utilize the chance