What Is the Expected Spot Rate of ¥/$(Canadian) One Year

question 93

Multiple Choice

What is the expected spot rate of ¥/$(Canadian) one year from now if the current spot rate is ¥66/$and the Yen is selling one-year forward at ¥70/$?

• A)¥78.9/$
• B)¥98.0/$
• C)¥66/$
• D)¥70/$

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Definitions:

Benzophenone

A compound used in organic synthesis and as a photoinitiator, characterized by a central benzene ring bonded to two carbonyl groups.

Triphenylmethanol

A white crystalline solid organic compound, used often as an intermediate in the synthesis of other chemicals.

Toluene

A flammable liquid hydrocarbon that is extracted from coal tar and petroleum, used as a solvent and chemical feedstock.

Organic Product

A compound containing carbon atoms, often derived from living organisms or synthesized in laboratories.