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The expected yen per pound exchange rate in one year's time is 150 yen/1 while the current UK 1 -year interest rate is 5% and

image text in transcribed The expected yen per pound exchange rate in one year's time is 150 yen/1 while the current UK 1 -year interest rate is 5% and the current Japan 1-year interest rate is 2% then which of the following is correct? Select one: a. The equilibrium spot exchange rate is approximately 145.63yen/ 1 and the yen is expected to depreciate b. The equilibrium spot exchange rate is approximately 145.63yen/ 1 and the yen is expected to appreciate. c. The equilibrium spot exchange rate is approximately 154.5yen/ 1 and the yen is expected to appreciate. d. The equilibrium spot exchange rate is approximately 154.5yen/ 1 and the yen is expected to depreciate. The expected yen per pound exchange rate in one year's time is 150 yen/1 while the current UK 1 -year interest rate is 5% and the current Japan 1-year interest rate is 2% then which of the following is correct? Select one: a. The equilibrium spot exchange rate is approximately 145.63yen/ 1 and the yen is expected to depreciate b. The equilibrium spot exchange rate is approximately 145.63yen/ 1 and the yen is expected to appreciate. c. The equilibrium spot exchange rate is approximately 154.5yen/ 1 and the yen is expected to appreciate. d. The equilibrium spot exchange rate is approximately 154.5yen/ 1 and the yen is expected to depreciate

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