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You observe the following JPY/AUD exchange rates in the market: Spot rate: JPY91/AUD 90-day Forward rate: JPY111/AUD By how much should the JPY/AUD exchange rate

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You observe the following JPY/AUD exchange rates in the market: Spot rate: JPY91/AUD 90-day Forward rate: JPY111/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. b. -5.49% c. -21.98% d. +5.49% e. +21.98%

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