Suppose japanese yen money market annual rate is .60 and, Ask an Expert

Management Studies

Q. Suppose Japanese yen money market annual rate is .60% and U.S. money market has an annual rate of 4.50%. The predictions on the spot rate in 6 months made by financial analysts X and Y are ¥116/$ and ¥114/$ respectively. If the spot rate today is ¥115/$, which prediction do you think is more reasonable, explain why?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9391448

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