Question
TakeshiKamada-UIA Japan(B). TakeshiKamada, Credit Suisse(Tokyo), observes that the/$ spot rate has been holdingsteady, and both dollar and yen interest rates have remained relatively fixed over
TakeshiKamada-UIA Japan(B).TakeshiKamada, Credit Suisse(Tokyo), observes that the/$ spot rate has been holdingsteady, and 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 ofTakeshi's research associateslong dash
and their computer modelslong dash
are predicting the spot rate to remain close to 118.00
118.00/$ for the coming 180 days. Using the databelow, analyze the UIA potential.
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
