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4. Consider the following forward contract: In 18 months, you will trade 1 million Yen at a price F/- c. Suppose the spot price Bys

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4. Consider the following forward contract: In 18 months, you will trade 1 million Yen at a price F/- c. Suppose the spot price Bys is 104. The bond price of a dollar denominated bond with face value $100 is 08. The bond price for a Yen equivalent is 99. Calculate Fys. c. If Fbs=101, do you buy or sell dollars in the forward contract? Do you buy or sell dollars using a synthetic

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