Suppose that the spot exchange rate between the Japanese Yen and the Chinese Yuan is JPY 2 1 0 0 per CNY The 6 month interest rates are 2 p a in Japan and 4 5 p a in China ( continuously compounded ) What should the 6 month forward price of CNY expressed in JPY be ...

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Suppose that the spot exchange rate between the Japanese Yen and the Chinese Yuan is JPY 2

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Question:

Suppose that the spot exchange rate between the Japanese Yen and the Chinese Yuan is JPY

21.00

per CNY

.

The

6 -

month interest rates are

2 %

.

.

in Japan and

4.5 %

.

.

in China

(

continuously compounded

) .

What should the

6 -

month forward price of CNY expressed in JPY be

?

Posted Date: May 18, 2024 06:09 PM

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