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Given the following information on the spot and forward exchange rates for the British Pound against the Japanese Yen ( these are direct quotes in
Given the following information on the spot and forward exchange rates for the British Pound against the Japanese Yen these are direct quotes in Japan: BOTH BID AND ASK ARE PROVIDED BELOW; USE BID RATES.
Spot:
day forward:
day forward:
a Compute the forward premiums of discounts for the British Pound against the Japanese Yen for the and the day maturities.
b Based on your computations, what is the market forecast for the Japanese Yen against the British Pound in days?
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