Question 14 Your Thomson Reuters F/X screen on June 20 2019 displays the 3-month annualized euro- currency rates (used for interbank transactions, and at the time almost risk-free) were about: USD 5.34%, JPY 0.59%. REQUIRED: a. From the above, should the Yen then have been trading at a forward discount or premium against the $? b. On the same day, the Yen traded at around 108 against the USD. From the quotes below, compute the forward premium or discount (in points) and the annualised forward rate: Mid-point (USD/JPY) Forward points Annualized forward Spot 0.009219 30 day fwd 0.009258 90 day fwd 0.009336 ? ? ? ? c. Under what circumstances can purchasing power parity be applied?