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Tomoko Matsubara is a currency arbitrager for Showa and Company in New York. The spot rate this morning is 0 . 0 0 8 2

Tomoko Matsubara is a currency arbitrager for Showa and Company in New York. The spot rate this morning is 0.0082987 $/ and early indications are that the 90-day US interest rates will raise from their current level of 8%. The 90-day forward exchange rate quoted to Matsubara-san by local banks such as Daichi Kangyo are all about the same 0.0089612 $/. The current 90-day yen interest rate is 4%. Matsubara can borrow up to $2 Million. Can you help her design a currency interest arbitrage against the Yen.

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