Question
Q3The Swiss interest rate for government securities with a one-year maturity is 4% and Swiss inflation for this period is expected to be 2%. The
Q3The Swiss interest rate for government securities with a one-year maturity is 4% and Swiss inflation for this period is expected to be 2%. The US interest rate on similar securities is 7% and US inflation is expected to be 5% over the next year. The current spot rate is SF1.4600 = $1. Using the International Fisher effect, what is next year's likely spot rate?
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Introduction To Machine Learning In Quantitative Finance An Advanced Textbooks In Mathematics
Authors: Hao Ni, Xin Dong, Jinsong Zheng, Guangxi Yu
1st Edition
1786349361, 9781786349361
