Here Are Some Statistics Based on the Linear Approximation of International Parity Relations, Replace

question 14

Essay

Here are some statistics:
$$\begin{array} { l c c } & \text { CEP(€) } & \text { CHF } \\\hline \text { Inflation (annual rate) } & 10 \% & 4 \% \\\text { One-year interest rate } & 12 \% & 7 \% \\\text { Spot exchange rate (CHF/E) } & & 3 \% \\\text { Eigdected exchange rate (in ane year) } & &? \% \\\text { One-year farward exchange rate } ( \mathrm { CHF } / \mathrm { F } ) & & ? \% \\\hline\end{array}$$ Based on the linear approximation of international parity relations, replace the question marks with the appropriate answers.

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