Suppose the 1 year interest rate in the U.S. is 4%, 1 year interest rate...
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Suppose the 1 year interest rate in the U.S. is 4%, 1 year interest rate offered in Switzerland is 5%. The spot rate of SFr is SFr1=$0.60. Assume International Fisher Effect holds, what should be the expected future spot rate 2 years from now for SFr? Please show your steps to get full credits.
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