Question: Use the data from Exhibit 1.1 together with the spot and forward exchange rates to examine if the interest rate parity holds. (Optional) how much

 Use the data from Exhibit 1.1 together with the spot and

Use the data from Exhibit 1.1 together with the spot and forward exchange rates to examine if the interest rate parity holds. (Optional) how much would we gain/lose in attempting to arbitrage between, say, the U.S. dollar and the yen at the 1-year maturity. The relevant data are as follows: Exhibit 1.1 Interest Rates

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