U.S. interest rate is 5.50%, Yen interest rate is 2%, exchange rate 129Y per USD; You are
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Question:
A) If in 1 year from now the exchange rate is 145 Y per USD, which is your gain (loss) measured in USD from this operation?
B) If in 1 year from now, the exchange rate is 115 Y per USD which is your gain (loss) measured in USD from the strategy?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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