Question
#8 (Interest rate parity) On August 8th the three-month risk-free rate of interest in the United States was 4.00 percent and it was 2.50 percent
#8 (Interest rate parity) On August 8th the three-month risk-free rate of interest in the United States was 4.00 percent and it was 2.50 percent in Japan.If the spot exchange rate were $0.010798/yen, what would you expect the forward exchange rate to be?
a.The expected 3-month forward exchange rate should be $_________/yen.(Round to six decimal places.)
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
