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The current spot exchange rate is S0 yen$ yen 190$ and the 1year forward rate is F1 yen$ yen 210$ The prime rate in the United States is 15 percent What should the Japanese prime rate be

The current spot exchange rate is S_0 yen/$ = yen 190/$ and the 1-year forward rate is F_1 yen/$ = yen 210/$. The prime rate in the United States is 15 percent. What should the Japanese prime rate be? According to forward parity, by how much should the dollar change in value during the next year?
 

Apr 09 2020 View more View Less

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