Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 2.62 percent and...
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Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 2.62 percent and the one-year risk-free rate in Japan is 1.05 percent. The spot rate between the Japanese yen and the U.S. dollar is 132.62/$. What is the one-year forward exchange rate? 118.05/$ 119.01/5 130.59/$ V120.01/$ V110.90/$ Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 2.62 percent and the one-year risk-free rate in Japan is 1.05 percent. The spot rate between the Japanese yen and the U.S. dollar is 132.62/$. What is the one-year forward exchange rate? 118.05/$ 119.01/5 130.59/$ V120.01/$ V110.90/$
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