A foreign exchange dealer in London normally quotes spot, one-month, threemonths, and one-year forward. When you ask over the telephone for current quotations for the Japanese yen against the U.S. dollar, you hear:

\[\text { " } 111.43 \text { to } 51,52 \text { to } 48,150 \text { to } 144,337 \text { to } 205 \text { " }\]

Answer the following, based on the above quotations.

a. What would you receive in dollars if you sold \(¥ 300,000,000\) spot?

b. What would it cost you to purchase \(¥ 400,000,000\) forward threemonths with dollars?

c. When would you make payment for the forward transaction?

d. In New York, six-month Treasury bills yield \(6 \%\) per annum. Using midrates (halfway between bid and ask) calculate the yield on Japanese sixmonth bills.

e. Verify your answer to part

(c) with a hypothetical investment of \(\$ 1,000,000\) for six months in both countries. Use mid-rates for simplicity and ignore charges and taxes.