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A Japanese investor can earn a 3.25% interest rate in Japan or 2.75% in the U.S.The spot exchange rate is 105 yen to the dollar.At

A Japanese investorcan earn a 3.25% interest rate in Japan or 2.75% in the U.S.The spot exchange rate is 105 yen to the dollar.At what forward rate would an investor be indifferent between the U.S. and Japanese investments?

What would you do if the forward was forfeweryen per dollar than the indifference rate?

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