Question: Please solve and show all work and steps. Answer is provided. a. Current interest rates are i_$ = 2% i_yen = 0.5%. Expected spot rate

Please solve and show all work and steps. Answer is provided.

Please solve and show all work and steps. Answer is provided. a.

a. Current interest rates are i_$ = 2% i_yen = 0.5%. Expected spot rate in one year S_1($/yen) is 1.15, according to the asset to the market approach, the current sport is S_0($/yen) = ___1.133___

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