Question: Please use excel to solve this question and show the equation A foreign currency trader in Tokyo is exploring into opportunity to earn a riskless

Please use excel to solve this question and show the equation

Please use excel to solve this question and show the equation A

A foreign currency trader in Tokyo is exploring into opportunity to earn a riskless profit. He intends to invest $5,000,000 or Yen equivalent. Use the following information Assumptions Spot rate (Y/$ 180-day forward rate /S 180-day U.S. dollar interest rate 180-dav Japanese ven interest rate Value 118.60 118.00 4.400% p.a 3.000% pa 1. Describe in detail how the trader can earn riskless profits and calculate amount of potential riskless profits that he can earn. Assuming that all other things including current spot rate, dollar interest rate and yen interest rate remain unchanged, calculate 180-day forward rate (Y/S) which will not allow the trader to earn a riskless profit any longer. Assuming that all other things including current forward rate, dollar interest rate and yen interest rate remain unchanged, calculate current spot rate (V/S) which will not allow the trader to earn a riskless profit any longer. 2. 3

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