Question
Suppose the spot and three-month forward rates for the yen are 79.65 and 79.00, respectively. What would you estimate is the difference between the annual
| Suppose the spot and three-month forward rates for the yen are 79.65 and 79.00, respectively. |
| What would you estimate is the difference between the annual inflation rates of the United States and Japan? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Annual inflation rate differential | %
The answer is NOT -2.42 |
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Financial Econometrics
Authors: Peijie Wang
1st Edition
0415426693, 978-0415426695
