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Assuming that the domestic interest rate level in Taiwan is 4%, the interest rate level in Japan is 2%, and the spot exchange rate of
Assuming that the domestic interest rate level in Taiwan is 4%, the
interest rate level in Japan is 2%, and the spot exchange rate of
Japanese yen to TWD is 0.36, then according to the theory of covered
interest rate parity, the six-month forward exchange rate is about
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