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17.12.2020 01:06
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30. Suppose the spot US$ yen exchange rate is .0089; the annual US$ rate is .011;

30. Suppose the spot US$ yen exchange rate is .0089; the annual US$ rate is .011; the annual yen rate is .003, what is the 1-year forward rate
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cloudFF
cloudFF
5,0(89 marks)

$0.0090/Yen

Explanation:

Based on the information given, the 1-Year forward rate will be calculated as:

= 0.0089 x (1+0.011) / (1+0.003)

= (0.0089 ร— 1.011)/1.003

= 0.89979/1.003

= 0.008971

= 0.0090 approximately

= $0.0090/Yen

wronganswer1026
wronganswer1026
4,8(57 marks)

C) Layer

Explanation:

Layers are a great way to be organized :)

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