Forward exchange rates: use the information

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Forward Exchange Rates: Use the information in Figure 31.1 to answer the following questions: 
a. What is the six-month forward rate tor the Japanese yen in yen per US dollar? Is the yen selling at a premium or a discount? Explain 

b. What is the three-month forward rate for British pounds in US dollars per pound? Is the dollar selling at a premium or a discount? Explain 


c. What do you think will happen to the value of the dollar relative to the yen and the pound, based on the information in the figure? Explain

 

Reference no: EM13691846

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