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You observe the following JPY/AUD exchange rates in the market: Spot rate: JPY120/AUD 90-day Forward rate: JPY140/AUD By how much should the JPY/AUD exchange rate

You observe the following JPY/AUD exchange rates in the market: Spot rate: JPY120/AUD 90-day Forward rate: JPY140/AUD By how much should the JPY/AUD exchange rate change in 90 days to prevent a profitable carry trade? a. There is no profitable carry trade possible. O b. +4.17% C.-4.17% O d. +16.67% e.-16.67%

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