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t Chapter 6 Homework (HW 5) Question 7, Problem 6-10 (algorithmic) Part 1 of 3 kin Yussuf 02/19/23 8:42 PM HW Score: 44.17%, 4.42

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t Chapter 6 Homework (HW 5) Question 7, Problem 6-10 (algorithmic) Part 1 of 3 kin Yussuf 02/19/23 8:42 PM HW Score: 44.17%, 4.42 of 10 points Points: 0 of 1 Save Kamada: UIA Japan (8) Takeshi Kamada, Credit Suisse (Tokyo), observes that the yen-dollar spot rate has been holding steady, and that both dollar and yen interest rates have remained relatively fixed over the past week. Takeshi wonders if he should try an uncovered interest arbitrage (UIA) and thereby save the cost of forward cover. Many of Takeshi's research associates-and their computer models-are predicting the spot rate to remain close to W118.00 $1.00 for the coming 180 days. Using the same data here. analyze the USA potential CO The USA proft potentials which tells Takeshi Kamada that he should borrow basis (UIA) (Round to three decimal places and select from the drop-down menus) and invest in the yielding currency, the to potentially gain on an uncovered

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