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Question
You can buy or sell the yen spot at 102 to the dollar. You can buy or sell the yen one-year forward at 104 to the dollar. If U.S. annual interest rates are 4%, what must be the approximate one-year Japanese interest rate if interest rate parity holds?
A. 5.92%
B. 3.20%
C. 2.75%
D. 4.73%
E. 6.80%
Answer
This answer is hidden. It contains 29 characters.
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