If USprices Are Expected to Rise by 3 Percent Over the the Coming

question 50

Multiple Choice

If U.S.prices are expected to rise by 3 percent over the coming year and prices in Switzerland are expected to rise by 7 percent during the same time, what is the expected spot rate in one year of the Swiss franc given that the current spot exchange rate is $0.168

• A)$0.1612
• B)$0.1613
• C)$0.1617
• D)$0.1745

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