Question
Suppose you have $1,000,000 to invest for one year. One-year interest rate is 1% in Japan and 4% in the United States. The current exchange
Suppose you have $1,000,000 to invest for one year. One-year interest rate is 1% in Japan and 4% in the United States. The current exchange rate is 120 yen per dollar, and you can enter a one-year forward contract with the exchange rate of 115 yen per dollar. Which county should you invest in and why?
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Multinational Finance Evaluating The Opportunities Costs And Risks Of Multinational Operations
Authors: Kirt C. Butler
6th Edition
111921968X, 978-1119219682
