Question
We have the spot rate for Japanese Yens to be Y122 per $1. The nominal (riskless) rates in Japan and US are 0.04 and .07
We have the spot rate for Japanese Yens to be Y122 per $1. The nominal (riskless) rates in Japan and US are 0.04 and .07 respectively. The forward rate is Y116 per $1. What nominal (riskless) rate of return for $ investments can an US investor earn by benefitting from the above rates?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
