The 1 year interest rate on the swiss francs is 55 and the, Financial Management

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The 1 year interest rate on the swiss francs is 55 and the

The 1 year interest rate on the Swiss francs is 5.5% and the dollar interest rate is 5.80%. If the current spot rate is $0.70/F, what would you expect the spot rate to be in one year?

Now suppose that the policy in the U.S changes and leads to the expected future spot rate of $0.71/F. Assuming that nothing changes in Switzerland, what would be the interest rate in the U.S?

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