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15. The short-term rate in Japan is 3% and in the United States it is...

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15. The short-term rate in Japan is 3% and in the United States it is 4%. The current exchange rate is $1 = 4109. What is the expected forward exchange rate? 16. Short-term interest rates in Australia and the United States are 1% and 3% respectively. The cur- rent exchange rate is AUD $1.0757 per U.S. dollar Suppose a forward exchange rate of 1.0500 AUD per U.S. dollar, could you profit from an arbitrage? 17. The interest rate in the United States is 4% and the exchange rate is $1= 0.92, the euro is expected to depreciate to 0.96 per U.S. dollar. Calculate the inter est rates for countries using the euro

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