Question
Answer questions 1 through 10 based on the following data: 3-month US (domestic) interest rate = 1.50% 3-month Japanese interest rate = 1.00% Current spot
Answer questions 1 through 10 based on the following data:
3-month US (domestic) interest rate = 1.50% 3-month Japanese interest rate = 1.00% Current spot exchange rate = $0.090 per yen Current forward exchange rate = $0.095 per yen
The 3-month yen-denominated gross return on Japanese yen deposits is ______ or so.
A) 1.01
B) 0.01
C) 1.0661
D) 0.0661
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
