Forward exchange rate for dollar-yen

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Assume the current U.S. dollar-yen spot rate is 90 ¥/$. Further, the current interest rate in Japan is 1% and 2% in the United States. What is the approximate 180-day forward exchange rate for dollar-yen?

A) ¥89.12/$

B) ¥89.55/$

C) ¥90.89/$

D) ¥90.45/$

Reference no: EM131527641

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