The Spot rate for USD to JPY is $1 to Y110. The riskless rate of return for

Fantastic news! We've Found the answer you've been seeking!

Question:

The Spot rate for USD to JPY is $1 to Y110.

The riskless rate of return for 6 months for investing in USD is 2%.

The riskless rate of return for 6 months for investing in JPY is 0.8%.

What is the 6 month Forward Rate of USD to JPY (number of JPY to be received for the payment of $1 6 months from today)?

Related Book For answer-question

Finance for Executives Managing for Value Creation

ISBN: 978-0538751346

4th edition

Authors: Gabriel Hawawini, Claude Viallet

See More Books

Posted Date: Mar 21, 2023 02:28 AM

See More Questions

1. Lawrence Company ordered parts costing FC100,000 from a foreign supplier on May 12 when the spot rate was $0.20 per FC. A one-month forward contract was signed on that date to purchase FC100,000...
A currency dealer, Nancy Wood, working for a U.S. bank took a 5,000,000 British pound short position when the exchange rate for the dollar/ was $1.5500. The exchange rate then changed to $1.6100. a....
Question 1 On January 2, a Canadian automobile dealer decided to import 1500 cars from Japan at a cost of 2.5 million Yen per car. The cars will arrive on April 30 at which time payment for the cars...
Given a risk-adjusted discount rate of 14%, calculate the discounted payback period for the following cash flow of a project. If the maximum target discounted payback period is 3 years, comment on...
Our cash budget shows a surplus for the quarter, so we do not have to think about arranging any bank financing. Comment on this statement.
Cash receipt from sale of land $ 34,000 The following data for the year ended September 30, 2018 has been presented by Bell Company: Net income Depreciation expense $ 20,000 Purchase of equipment $...
The disc shown in Fig. P6.81 has a diameter $D$ of $1 \mathrm{~m}$ and a rotational speed of $1800 \mathrm{rpm}$. It is positioned $4 \mathrm{~mm}$ from a solid boundary. The gap is filled...
After the success of the company's first two months, Santana Rey continues to operate Business Solutions. (Transactions for the first two months are described in the Chapter 2 serial problem.) The...
On 1 April 2 0 X 3 , Warminster entered into a lease agreement. The payment terms comprise $ 6 0 , 0 0 0 payable on 1 April 2 0 X 3 followed by three further payments of $ 6 0 , 0 0 0 payable on 3 1...
The goodwill of $20,000 on Illini's 12/31/20X0 Balance Sheet is related to a subsidiary of Illini (i.e., a reporting unit). At the end of 20X1, there is no indication that it is more likely than not...
Trial Balance and end-of-period adjustments of SLM Co. on 31.12.2019 are given in Section 1 and Section 2. According to the information given, prepare: 1. End-of-period adjustments (40 P) 2. Income...
What responsibility do sports organizations, specifically the NFL and MLB, have in ensuring that their players are being cared for physically, emotionally, and mentally? Is it up to the NFL and MLB...
In an age of social media, video sharing, and microblogging, discuss a letters efficacy or suggest other methods for communicating with a fan base.
If people designated male at birth do have advantages over other people in terms of strength and speed, discuss whether those advantages matter in all sports. Give examples of sports where increased...
What is the responsibility of sports news organizations to include the voices of survivors of IPV while balancing privacy, legal proceedings, and readership?
Discuss other ways to balance out physical advantages other than by strict sex segregation.Wrestling and boxing provide examples of how sports might separate athletes into different classes based on...
TV King Ltd is known for selling high quality plasma televisions that are imported from Japan. The annual demand for the A545 model of their 40" plasma TV is around 900 units. TV King Ltd incurs...
AB CORPORATION ISSUED THE FOLLOWING 850 COMMON STOCKS PAR VALUE P100 750 PARTICIPATING PREFERRED STOCKS PAR VALUE P100 AT 3% AB CORPORATION DECLARED P100,000.00 DIVIDEND IN 2022.
Five years ago, your favorite aunt won a $1,000,000 lottery. The prize money is paid out $50,000 per year for twenty years. Unfortunately, your aunt needs as much as $250,000 cash now to pay for...
Mars Electronics is a distributor for the Global Electric Company (GEC), a large manufacturer of electrical and electronics products for consumer and institutional markets. Below are the semiannual...
As a trader, you can trade based on the following data: 1. Spot rate: S0USD/EUR = 1.25 2. Forward rate: F0USD/EUR = 1.248 3. U.S. one-year deposit rate: rUSD = 3 percent 4. Euro-zone one-year deposit...
a. In Experiment 4A, set the sample frequency to 50 msec and measure the phase margin. b. Compare this with the phase margin with a 1-msec sample time (same as Question 1c). (DATA FROM QUETION 1C) c....
a. Using the DSA in Experiment 4A to generate open-loop Bode plots, what is the phase margin when the sample time is set to its default (0.00025 sec)? b. Repeat with a sample time of 0.0005 sec. c....
Using Experiment 3A, follow the zone-based tuning procedure of Section 3.5 using a square wave command with the following criteria: For KP, allow no overshoot. For KI, allow about 10% overshoot. a....

The Spot rate for USD to JPY is $1 to Y110. The riskless rate of return for

Question:

Expert Answer:

To calculate the 6 month forward rate of USD to JPY we need to co... View the full answer

Finance for Executives Managing for Value Creation

Students also viewed these finance questions