Question
29. Based on the following table. Instrument Bid Ask USDJPY1MFWD -3.14 -2.9 USDJPY2MFWD -6.22 -5.82 USDJPY3MFWD -9.78 -9.18 USDJPY4MFWD -13.17 -12.37 USDJPY5MFWD -16.39 -15.39 USDJPY6MFWD
29. Based on the following table.
| Instrument | Bid | Ask |
| USDJPY1MFWD | -3.14 | -2.9 |
| USDJPY2MFWD | -6.22 | -5.82 |
| USDJPY3MFWD | -9.78 | -9.18 |
| USDJPY4MFWD | -13.17 | -12.37 |
| USDJPY5MFWD | -16.39 | -15.39 |
| USDJPY6MFWD | -20.44 | -19.24 |
| USDJPYSpot | 107.147 | 107.257 |
What is the average annualized forward premium/discount for the JPY if you use the 2M forward contract (Format for answer: X.XX% or -X.XX%)
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
