Suppose that the current Swiss franc to U.S. dollar spot exchange rate is $:SFr = 1.60. The

Question:

Suppose that the current Swiss franc to U.S. dollar spot is $:SFr = 1.60. The expected inflation over the coming year is 2 percent in Switzerland and 5 percent in the United States. According to purchasing power parity, what is the expected value of the Swiss franc to U.S. dollar spot a year from now?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...