You observe a spot exchange rate of $CA\frac{D}{C}HF=0\mathrm{.}7098.$ You also see that inflation in Canada is expected to average $4\%$ annually for the next three years while inflation in Switzerland is expected to average $1\%$ over the same period. Using the formula for relative Purchasing Powier Parity:

$E(S_3)=S_0[1+(h_{FC}-h_{CDx})]$ compute the expected spot exchange rate three $(3)$ years from today.

a$.$ Exchange rate is expected to be $CA\frac{D}{C}HF=0\mathrm{.}7478$

b$.$ Exchange rate is expected to be $CA\frac{D}{C}HF=0\mathrm{.}5478$

c$.$ Exchange rate is expected to be $CA\frac{D}{C}HF=0\mathrm{.}8478$

d$.$ Exchange rate is expected to be $CA\frac{D}{C}HF=0\mathrm{.}6478$

a$.0\mathrm{.}6478$