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Question 13 1 Suppose Bank One offered the following direct spot and forward markets quotes...

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Question 13 1 Suppose Bank One offered the following direct spot and forward markets quotes for JPY over three points in time now (1/1/XXI. three months later (4/1/XX, and six months later (7/1/XX) JPY Spot 3 Month Forward 6 Month Forward 1/1/XX 0.0094 0.0096 0.0097 4/1/XX 0.0088 0.0077 0.0071 7/1/XX 0.0089 0.0085 0.0080 On 1/1/XX, IBM took a los position in a 3-month forward contract for 100 Million Japanese Yens with Bank One Based on this transaction IBM will pay Bank One 100 Million Japanese Yens in 3 months, and Bank one will pay IBM 5770,000 in 3 months IEM will pay Bank One $960.000 now, and Bank One will pay 100 Million Japanese IBM in 3 months IBM will pay Bank One 5880.000 in 3 months, and Bank One will pay 100 Million japanese Yens to TOM in 3 months IBM will pay Bank One $960.000 in 3 months, and Bank One will pay IBM 100 Milion Japanese Yen in 3 months

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