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Part A and B please Japanese Australia Parity Conditions. William Leon is attempting to determine whether Japanese and Australian financial conditions are at parity. The
Part A and B please
Japanese Australia Parity Conditions. William Leon is attempting to determine whether Japanese and Australian financial conditions are at parity. The current spot rate is a flat 108.24 / A$, while the one-year forward rate is \106.38 / A$. Forecast inflation is 4.93% for Japan and 6.81% for the Australia. The one-year Japanese yen deposit rate is 7.65%, and the one-year Australian dollar deposit rate is 9.53% a. Find the forecasted change in the Japanese yen/Australian dollar ( / A$) exchange rate one year from now. b. Diagram and calculate whether international parity conditions hold between Japan and Australia. a. Find the forecasted change in the Japanese yen Australian dollar ( / A$) exchange rate one year from now. The forecast change in spot exchange rate is %. (Round to two decimal places.) Japanese Australia Parity Conditions. William Leon is attempting to determine whether Japanese and Australian financial conditions are at parity. The current spot rate is a flat 108.24 / A$, while the one-year forward rate is \106.38 / A$. Forecast inflation is 4.93% for Japan and 6.81% for the Australia. The one-year Japanese yen deposit rate is 7.65%, and the one-year Australian dollar deposit rate is 9.53% a. Find the forecasted change in the Japanese yen/Australian dollar ( / A$) exchange rate one year from now. b. Diagram and calculate whether international parity conditions hold between Japan and Australia. a. Find the forecasted change in the Japanese yen Australian dollar ( / A$) exchange rate one year from now. The forecast change in spot exchange rate is %. (Round to two decimal places.)Step by Step Solution
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