Multiple Choice
An investor invests in a Japanese bond at 5.5% for one year. The equivalent USA investment yields 3.8%. If the spot exchange rate is 110.00 yen per USD, what is the expected forward exchange rate in yen per USD?
A) 111.80
B) 111.49
C) 111.03
D) 110.91
Correct Answer:
Verified
Correct Answer:
Verified
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