The Current Spot Exchange Rate Between the Japanese Yen and the Canadian

question 1

Multiple Choice

The current spot exchange rate between the Japanese yen and the Canadian dollar is *105/$. The yen is expected to appreciate by 5% against the dollar over the next six months. What do you expect the spot exchange rate between the yen and the dollar to be six months from now?

• A) *94.50/$
• B) *99.75/$
• C) *110.25/$
• D) *115.50/$