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11. The spot exchange rate is 110.0JPN/USD and the semiannually compounded risk-free rate of USD...

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11. The spot exchange rate is 110.0JPN/USD and the semiannually compounded risk-free rate of USD is 5.06%. You observe a exchange forward with 9-month maturity is 112.9JPN/USD. a. What risk-free rate of JPN is implied by this forward price? b. Suppose you believe the risk-free rate of JPN over the next 9 months will be only 0.5%. What arbitrage would you undertake? c. Suppose you believe the risk-free rate of JPN will be 3 % over the next 9 months. What arbitrage would you undertake

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