Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1. the spot yen/ exchange rate is 145.94 yen/. the

1. The spot yen/ exchange rate is 145.94 yen/. The 4 month forward rate is...

90.2K

Verified Solution

Question

Finance

image
1. The spot yen/ exchange rate is 145.94 yen/. The 4 month forward rate is 147 yen/. What is the yen's forward premium (or discount) on the pound, expressed as an annual percentage? a. 0.721 percent discount b. 2.88 percent premium c. 0.721 percent premium d. 2.163 percent discount 2. The Swiss economy is predicted to average inflation at 4 percent per year. The inflation forecast for the United States is 6 percent per year. If the current exchange rate is 1.4SF/$, what should be the expected exchange rate one year from now in order to avoid arbitrage? a. 1.4SF/S b. 1.4275F/$ c. 1.373SF/$ d. none of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students