Interest rates in Switzerland are currently 1.5% p.a. and in the United Kingdom interest rates are currently offered at 4.5% p.a. Current exchange rates are USD/CHF 0.9045 and GBP/USD 1.2652
The USD is currently selling at a forward discount of 3.6% p.a. against the Swiss Franc (CHF).
The GBP is currently selling at a forward discount of 0.13% p.a. against the USD.
Generate a three-year forecast for the value of the British Pound in terms of Swiss Francs using the International Fisher Effect
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Interest rates in Switzerland are currently 1.5% p.a. and in the United Kingdom interest rates are currently offered at 4.5% p.a. Current exchange rates are USD/CHF 0.9045 and GBP/USD 1.2652

The USD is currently selling at a forward discount of 3.6% p.a. against the Swiss Franc (CHF).

The GBP is currently selling at a forward discount of 0.13% p.a. against the USD.

Generate a three-year forecast for the value of the British Pound in terms of Swiss Francs using the International Fisher Effect

Show all workings

please help

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