IF Interest Rate Parity holds, given information, what should be the Forward Rate between japan yen and Argentine Peso one year from now? Interest Rates: Argentina $=50\%$ per year. Japan $=1\%/$year SPOT Exchange Rate: $1$ Japanese yen $=6$ Argentine Peso B If Bank of Argentina is quoting a forward rate of : $1$ Japanese yen $=8$ Argentine Peso one year from now, Explain, from the perspective of an Japanese investor, how he can profit from this situation. What steps should he take? If he started with $100,000,000$ yen what will be his profit from this transaction?

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