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If the Yen spot rate is 110 (/$), the U.S. 1-month risk-free rate is 2%, and the Japanese 1-month risk-free rate -0.050% (both on a
If the Yen spot rate is 110 (/$), the U.S. 1-month risk-free rate is 2%, and the Japanese 1-month risk-free rate -0.050% (both on a continuous compounded basis), what is the closest expected price of a Yen 1-month forward? Pick the closest answer.
Group of answer choices
0.0088 ($/)
0.0091 ($/)
0.0093 ($/)
0.0095 ($/)
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