Suppose That S₀^$/SFr = $1

Suppose that S₀^$/SFr = $1.27/SFr and F₁^$/SFr = $1.28/Sfr for exchange between U.S. dollars and Swiss francs. These prices indicate that ______.

A) nominal interest rates are higher in the U.S. than in Switzerland
B) the inflation rate in Switzerland is declining
C) the Swiss franc has recently risen in relation to the dollar
D) the Swiss franc is expected to fall in value relative to the dollar
E) it is not possible to claim that any of the above are true without additional information