Question: The current spot exchange rate between the US dollar and the yen is 125 yen/$. If the 90-day forward exchange rate is 127 yen/$, then

The current spot exchange rate between the US dollar and the yen is 125 yen/$. If the 90-day forward exchange rate is 127 yen/$, then the yen is selling at an annual ________ of ________.?

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ANSWER To calculate the annual rate of the yen we need to use the formula for the forward premium or ... View full answer

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