Question
Suppose the rate of appreciation of the dollar relative to the yen over the next 90 days is normally distributed with a mean of -1%
Suppose the rate of appreciation of the dollar relative to the yen over the next 90 days is normally distributed with a mean of -1% and a standard deviation of 5%. Use a spreadsheet program to graph the distribution of the future yendollar exchange rate. If the current spot exchange rate is 105 / $, and the 90-day forward rate is 106/ $, describe the distribution of yen profits or losses from selling $5,000,000 forward (note to use statistical excel functions norm.inv and norm.dist).
Could you tell me what goes into the excel cells so I can construct it myself to practice?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started