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Forward Rate Abbreviation Spot Rate 1 Month 3 Month 1 Year Europe: Euro Sweden (krona) Switzerland (franc) United Kingdom (pound) EUR or SEK CHF GBP

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Forward Rate Abbreviation Spot Rate 1 Month 3 Month 1 Year Europe: Euro Sweden (krona) Switzerland (franc) United Kingdom (pound) EUR or SEK CHF GBP or 1.2413 7.4567 0.9684 1.5678 1.2416 1.2421 7.4561 7.455 0.9681 0.9673 1.5674 1.5667 1.2463 7.4433 0.9621 1.5634 Americas: Brazil (real) Canada (dollar) Mexico (peso) BRL CAD MXN 2.5218 1.1228 3.6083 13.6375 13.6823 2.5449 2.5874 1.1236 1253 2.7858 1.1327 13.9248 Pacific/Middle East/Africa: AUD HKD INR JPY or Y ZAR KRW 1.1297 7.7573 66.3775 Australia (dollar) Hong Kong (dollar) India (rupee) Japan (yen) South Africa (rand) South Korea (won) 1.1544 11593 7.7573 7.7573 62.215 63.025 117.565 117.541 117.429 1.1516 7.7573 61.8 116.903 0.9308 10.9901 11.0976 11.6194 1113.9 1115.5 1118 1123.2 Use Table 271 to answer the following questions: a. How many Japanese yen do you get for your dollar? (Round your answer to 3 decimal places.) Amount b. What is the one-month forward rate for yen? (Round your answer to 3 decimal places.) Fonvard rate G. Is the yen at a forward discount or premium on the dollar? Discount Premium d. Use the one-year forward rate to calculate the annual percentage discount or premiuon yen. Enter your answer as a positive value. Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Click to selcct) e. If he one-year interest rate on dollars s decimal places.) 5% annual y compounded, what do out k s the one- ea interest rate on en bo o ou d ntermediate calculations Enter your answer as centro de to f. According to the expectations theory, what is the expected spot rate for yen in three months time? (Round your answer to 3 decimal places.) Expected spot rate g. According to purchasing power parity theory, what then is the expected differenoe in the three-month rate of price inflation in the United States and Japan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Enter your answer as a positive value.) nflation in Japan over the 3 months is expected to be (Click to select)" | than in the United States

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