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Problem 2 . You have the following information: t spot exchange rate: 0.01 Curren S/yen Current 180-day forward exchange rate: 0.0105$/yen 180 day US interest

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Problem 2 . You have the following information: t spot exchange rate: 0.01 Curren S/yen Current 180-day forward exchange rate: 0.0105$/yen 180 day US interest rate: 6.05% 180 day Japanese interest rate: 1.00% (the interest rates are not annualized!) Is the yen at a forward discount or forward premium? . Make your way around the lake! Start with 1 dollar now and end up with dollars in 180 days. Start with 100 yen now and end up with yen in 180 days

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