The spot $:SFr is equal to 1.4723. The three-month interest rates are 1.80 percent for the U.S.

Question:

The spot $:SFr is equal to 1.4723. The three-month interest rates are 1.80 percent for the U.S. dollar (7.2% annualized) and 0.95 percent for the Swiss franc (3.8fV annualized). Assuming that the participants are risk-neutral, what is the implied market prediction for the three-month ahead $:SFr exchange rate?
Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...