What Is the Expected Spot Rate of ¥/$ 1 Year

question 89

Multiple Choice

What is the expected spot rate of ¥/$ 1 year from now if the current spot rate is ¥106/$ and the yen is selling 1-year forward at ¥114/$?

• A) ¥78.9/$
• B) ¥98.0/$
• C) ¥106.0/$
• D) ¥114.0/$

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Definitions:

Chemical Reactions

Processes in which substances interact to form new compounds with different chemical properties.

Fatty Acid

Molecule that contains a hydrocarbon chain and ends with an acid group.

Amino Acid

Organic compounds that combine to form proteins, serving as the building blocks of protein synthesis and playing vital roles in processes such as neurotransmitter transport and biosynthesis.