Assume that annual interest rates are 1.4 percent in the United States and 0.9 percent in Japan. A Bank can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is US$0.007/ and the forward rate is US$0.0075/.If the bank borrows a sum of US$2million, what is the expected spread measured in dollars?

NOTE: Do not write comma (,) or any $ or symbols, USD/Yen etc in your answer. Simply write the absolute value as your answer. For example: if you answer is $150,000, simply write 150000

Question 6 Assume that annual interest rates are 1.4 percent in the United States and 0.9 percent in Japan. A Bank Not yet can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is US$0.007/Y and answered the forward rate is US$0.0075/Y. If the bank borrows a sum of US$2million, what is the expected spread Marked out of measured in dollars? 4.00 P Flag question NOTE: Do not write comma (,) or any $ or * symbols, USD/Yen etc in your answer. Simply write the absolute value as your answer. For example: if you answer is $150,000, simply write 150000 Answer: Previous page Next page