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:

Recognize

To identify someone or something from having encountered them before; to know again.

Preoperational Child

A stage in Piaget's theory of cognitive development where children, typically aged 2-7, are not yet able to think logically or understand the concept of conservation.

Another's Point Of View

The ability to understand and consider the perspective, feelings, and thoughts of someone else, essential for empathy and social interaction.

Egocentrism

The inability to differentiate between self and other, often seen in early childhood development, leading individuals to assume that others share their viewpoints.