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1.How much Company A will make in 1 years time assuming 1 USD = 105 JPY at the end of 1 year? 2.What is the

1.How much Company A will make in 1 years time assuming 1 USD = 105 JPY at the end of 1 year?

2.What is the MTM of the forward contract at month 3 if the JPYUSD exchange rate remains at 105, JPY interest rate is unchanged, but USD interest increases to 5%?3.What is the MTM of the forward contract at month 3 if interest rates do not change but the JPYUSD exchange rate changes to 80?

4.Is this arbitrage trade a good idea now and why?

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