Question: U . S . interest rate is 5 . 5 0 % , Yen interest rate is 1 % , exchange rate 1 4 9

U.S. interest rate is 5.50%, Yen interest rate is 1%, exchange rate 149 Yen per USD; You are borrowing 10,000,000 Yens and planning to do a carry trade investing it in US.
a) If in 1 year from now the exchange rate is 160 yen per USD, which is your gain (loss) measured in USD from this operation?
b) If in 1 year from now, the exchange rate is 140 yen per USD which is your gain (loss) measured in USD from the strategy?

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