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You observe the following JPY/EUR exchange rates in the market: Spot rate: JPY109/EUR 90-day Forward rate: JPY129/EUR By how much should the JPY/EUR exchange rate

You observe the following JPY/EUR exchange rates in the market: Spot rate: JPY109/EUR 90-day Forward rate: JPY129/EUR By how much should the JPY/EUR exchange rate change in 90 days to prevent a profitable carry trade? a. There is no profitable carry trade possible. b. +4.59% C. +18.35% d. -4.59% e.-18.35%

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