Question: Use the information in Figure to answer the following questions: a. What is the six-month forward rate for the Japanese yen in yen per U.S.

Use the information in Figure to answer the following questions:

a. What is the six-month forward rate for the Japanese yen in yen per U.S. dollar? Is the yen selling at a premium or a discount? Explain.

b. What is the three-month forward rate for the Canadian dollar in U.S. dollars per Canadian dollar? Is the dollar selling at a premium or a discount? Explain.

c. What do you think will happen to the value of the dollar relative to the yen and the Canadian dollar, based on the information in the figure? Explain.

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