You can buy or sell the yen spot at Y102 to the dollar. You can buy or

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You can buy or sell the yen spot at Y102 to the dollar. You can buy or sell the yen 1 year forward at Y104 to the dollar. If U.S. annual interest rates are 4%, what must be the approximate one year Japanese interest rate if interest rate parity holds d

A) 5.92%

B) 3.20%

C) 2.75%

D) 4.73%

E) 6.80%

Explain and work out your answer please

Posted Date: Jun 25, 2024 04:31 PM

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You can buy or sell the yen spot at Y102 to the dollar. You can buy or

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