Suppose that the one-year interest rate is 12 percent in the United Kingdom. The expected annual rate

Question:

Suppose that the one-year interest rate is 12 percent in the United Kingdom. The expected annual rate of inflation for the coming year is 10 percent for the United Kingdom and 4 percent for Switzerland. The current spot is £:SFr = 3. Using the precise form of the international parity relations, compute the one-year interest rate in Switzerland, the expected Swiss franc to pound in one year 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...