Dereck tosh is attempting to determine whether us japanese, Ask an Expert

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Dereck Tosh is attempting to determine whether US/ Japanese financial conditions are at parity.

The current spot rate is a flat ¥89.00/$ , while a 360 day forward rate is ¥84.90/$. Forecast inflation is 1.100% for Japan and 5.900% for USA. The 360 day euro yen deposit rate is 4.700%. And the 360 day euro dollar deposit rate is 9.500%

A. Calculate whether international parity conditions hold between Japan and the USA

B. Find the forecast change in the Japanese yen/ US dollar (¥/$) exchange rate one year from now.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9994064

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