A&B

Derek Tosh and Yen-Dollar Parity. Decek Tosh is attempting to dotermine whether USUapanese francal conditions are at parily. The current spot rato is a flat 789.0015, while the 360-day forward rate is 84.90. Forecast inflation is 1.097% for Jopan, and 5.903% for the US. The 300 -day eura-yen depost rate is 4.705% and the 360-day euro-dolar deposit rate is 3605%. a. Calculate whether intemational parity condibons hold betweon Jagan and the Urized States b. Find the forecasted change in the Japanese yenU.S. dollar (Vis) exchange rate one yoar from now. a. Calculate whether international parity condifions hold between Jagan and the Unted States Derek Tosh and Yen-Dollar Parity. Derek Tosh is attempting to determine whether US/Japanese financial conditions are at parity. The current spot rate is a flat. 89.001\$, while the 360-day forward rate is Y84.901\$. Forecast inflation is 1.097% for Japan, and 5.903% for the US. The 360-day euro-yen deposit rate is 4.705%, and the 380-day euro-dollar deposit rate is 9.505%. a. Calculate whether interriational parity conditions hold between Japan and the United States, b. Find the forecasted change in the Japariese yervU.S. dollar (/S) exchange rate one year from now. a. Calculate whether intemational parity contitions hold bebween Japan and the Unated States The forecast difference in rates of intlation is 4 (U.8. higher than Japan). (Round to ane decimal place.) Derek Tosh and Yen-Dollar Parity. Derek Tosh is attempting to determine whether US/Japanese financial concitions are at parity. The current spot rate is a flat Y89.0015, while the 380-day forward rate is Y84.90/S. Forecast inflation is 1.097% for Japan, and 5.903% for the US. The 360 -day ouro-yen deposit rate is 4.705%, and the 360-day euro-dollar deposit rate is 9.505%. a. Calculate whether intemational parity conditions hold between Japan and the United States. b. Find the forecasted change in the Japanese yenU.S. dollar (Yis) exchange rate one year from now. a. Calculate whether intemational party conkitions hold between Japan and the United States. The forecast difference in rates of inflation is \% (U.S higher than Japan). (Round to one decirnal place)