Problem 8:

Intro The current exchange rate between the yen M and the U.S. dollar is $0.009 per . The yen is expected to depreciate by 0.8% per day against the dollar and the standard deviation of the of daily percentage changes in the yen against the dollar is 0.18% Part 1 Attempt 5/10 for 10 pts. What is the maximum one-day depreciation of the yen against the dollar with a 95% confidence level (VaR5%)? 4+ decimals Submit Part 2 | Attempt 4/10 for 10 pts. What is the expected value of the yen if the maximum one-day loss from the previous part occurs (in $ per )? 4+ decimals Submit