Please show/explain how to get the answers. I provided the answers below in bold.

Please answer the next 5 questions based on the following information. Please use the exact, not the approximate formula to answer all questions.

Current spot rate of SF = $0.6543; Current 1-year forward rate for SF = $0.6808; 1-year interest rate in the U.S. = 3.5%; 1-year interest rate in the Switzerland = 7.5%

1. If the spot rate of SF one year latter is $0.6925, then uncovered rate of return from the US point of view would be:

13.78%

2. If you borrowed in $5,000,000 and invested in SF, and the spot rate of SF one year latter turned out to be $0.6925, then your profit/loss from the uncovered transaction at the end of the year would be:

$513,809

3. If the spot rate of SF a year latter is $0.6400 then uncovered rate of return from the Swiss viewpoint is:

5.81%

4. If you knew that the spot rate of SF one year latter would be $0.6400, then you should borrow in ____ and invest in ____ .

USD; SF

5. Based on IFE, calculate the expected spot price of SF one year from now should be:

$0.6299