PLEASE GIVE THE EXPLANATION!

1. Suppose that So $1.27/CHF and F- $1.28/CHF are the spot and one-year forward exchange rates between Canadian dollars and Swiss francs, respectively. These prices indicate that+ A) Nominal interest rates are higher in Canada than in Switzerland B) The inflation rate in Switzerland is declining* C) The Swiss franc has recently risen in relation to the dollar D) The Swiss franc is expected to fall in value relative to the dollar