Business, 18.06.2020 22:57 unknown9263

Derek Tosh is attempting to determine whether US/Japanese financial conditions are at parity. The current spot rate is a flat Yen 89.00/$, while the 360-day forward rate is Yen 84.90/$. Forecast inflation is 1.101% for Japan, and 5.905 for the US. The 360-day euro-yen deposit rate is 4.704%, and the 360-day euro-dollar deposit rate is 9.505%.1. Calculate whether international parity conditions hold between Japan and the United States.2. Find the forecasted change in the Japanese Yen/U. S. dollar?

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Derek Tosh is attempting to determine whether US/Japanese financial conditions are at parity. The cu...

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