Difference between the inflation rates of the united states

Reference no: EM131424243

Spot versus Forward Rates Suppose the spot and three-month forward rates for the yen are ¥93.85 and ¥93.45, respectively.

a. Is the yen expected to get stronger or weaker?

b. Estimate the difference between the inflation rates of the United States and Japan.

Reference no: EM131424243

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