Assume the Following: the Current Spot Rate S_¥/$ = 100

question 48

Multiple Choice

Assume the following: the current spot rate S_¥/$ = 100.0 and the annual interest rates: i_JAPAN = 2% and i_US = 10%.According to covered interest parity,if an intern at Citibank sets the one-year forward rate: F³⁶⁰_¥/$ = 91,then:

• A) the intern has correctly set the forward rate.
• B) both U.S. and Japan's investment returns are equal.
• C) the Japan's investment return exceeds the U.S. investment return
• D) the U.S. investment return exceed the Japan's investment return

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Definitions:

Lay Referral Network

The network of family and friends from whom a person may first seek medical information and advice.

Medical Care

The services provided by health professionals to diagnose, treat, and prevent disease, illness, injury, and other physical and mental impairments.

Lay Referral Network

A system through which individuals seek and receive health advice or recommendations from non-professional acquaintances, family, and friends.

Disease Indicators

Markers or signs that may indicate the presence or severity of a disease.