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The expected annual inflation in Switzerland is 0.12% and the expected annual inflation in the U.S. is 1.00%. The one-year U.S. interest rate is 3.95%.
The expected annual inflation in Switzerland is 0.12% and the expected annual inflation in the U.S. is 1.00%. The one-year U.S. interest rate is 3.95%. The spot SFr/$ is 1.2937. What is the one-year interest rate in Switzerland? What is the expected spot SFr/$ in one year according to uncovered interest parity
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