636 viewsOctober 22, 2016 0 Darshita6.14K October 22, 2016 0 Comments The inflation rate in Great Britain is expected to be 4% per year, and the inflation rate in Switzerland is expected to be 6% per year. If the current spot rate is £1 = SF 12.50, what is the expected spot rate in two years? 1 Answer ActiveVotedNewestOldest 0 Darshita6.14K Posted October 22, 2016 0 Comments Answer. Based on PPP, the expected value of the pound in two years is 12.5 x (1.06/1.04)2 = SF12.99. Register or Login
