Question
If interest rates for three years are 2% in the US, and 1% in Japan and the currency /$ rate is 110, what quote would
If interest rates for three years are 2% in the US, and 1% in Japan and the currency ¥/$ rate is 110, what quote would you provide for a 3-year ¥ forward contract? If the 3-year forward rate is quote to you at 113 ¥/$, is there an arbitrage? How much can you make with a $1 million line of credit?
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a given spot rate 1110yen ie 1 yen 1110 interest rate in US2 interest rate in japan 1 Forward rate a...
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Decision Systems for Business Intelligence
Authors: Vicki L. Sauter
2nd edition
9781118304662 , 1118304667, 978-0470433744
