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Posted on Sep 08, 2024

The Spot rate for USD to JPY is $1 to Y108. The riskless rate of return for 6 months for investing in USD is 2%.

The Spot rate for USD to JPY is $1 to Y108.

The riskless rate of return for 6 months for investing in USD is 2%.

The riskless rate of return for 6 months for investing in JPY is 0.7%.

What is the 6 month Forward Rate of USD to JPY (number of JPY to be received for the payment of $1 6 months from today)?

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