Question 5559 use the following information: Suppose Japanese yen money market annual rate is .60\% and UJ.S. money market has an annual rate of 4.50%. The predictions on the spot rate in 6 months made by financial analysts X and Y are 116/5 and 114/5 respectively. If the spot rate today is 115/5. which prediction do you think makes more sense and why? What should be the spot rate in 6 months based on parity condition? Please show reasoning and computing steps. If the forward rate in 6 months is 112/$, will there be arbitrage opportunity, why? Please by specific borrow of lend, long or short forward, and dollar or yen)? If financial analyst X believes his prediction is right, then what he would do to explore the market profit opportunity? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)