Suppose that a central banks policy is to allow an exchange rate to fluctuate between 0.97 and

Question:

Suppose that a central bank’s policy is to allow an to fluctuate between 0.97 and 1.03. What pattern of implied volatilities for options on the would you expect to see?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...