Question
Use the following spot and forward bid-ask rates for the Japanese yen/U.S. dollar (/$) exchange rate from 2020. Calculate the annual forward premium on JPY
Use the following spot and forward bid-ask rates for the Japanese yen/U.S. dollar (/$) exchange rate from 2020. Calculate the annual forward premium on JPY for all maturities
USD/JPY Spot: Bid=109.755 and Ask= 109.762
|
| Bid | Ask |
| USD/JPY 1-Month Forward | 17.019 | 16.461 |
| USD/JPY 2-Month Forward | 37.08 | 36.88 |
| USD/JPY 3-Month Forward | 54.325 | 53.175 |
| USD/JPY 6-Month Forward | 106.48 | 105.98 |
| USD/JPY 1-Year Forward | 209.39 | 208.39 |
| USD/JPY 2-Year Forward | 396.7 | 392.7 |
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
