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these are 2 seperate questions 67.8) The spot exchange rate is 102.30/$, the 180-day forward exchange rate is 101.40/$, the 180-day dollar interest rate is

these are 2 seperate questions

67.8) The spot exchange rate is 102.30/$, the 180-day forward exchange rate is 101.40/$, the 180-day dollar interest rate is 4.8% per year, and the 180-day yen interest rate is 3.4% per year. Models suggest that spot will remain close to 101.90/$ over the next 180 days. How much profit does investing $5,000,000 (or its yen equivalent) in a covered interest arbitrage between US dollars and Japanese yen yield?

67.9) The spot exchange rate is 102.30/$, the 180-day forward exchange rate is 101.40/$, the 180-day dollar interest rate is 4.8% per year, and the 180-day yen interest rate is 3.4% per year. Models suggest that spot will remain close to 101.90/$ over the next 180 days. How much profit does investing $5,000,000 (or its yen equivalent) in an uncovered interest arbitrage between US dollars and Japanese yen yield?

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