In Japan,90-Day Securities Have a 4% Annualized Return and 180-Day

question 17

Multiple Choice

In Japan,90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return.In the United States,90-day securities have a 4% annualized return and 180-day securities have an annualized return of 4.5%.All securities are of equal risk,and Japanese securities are denominated in terms of the Japanese yen.Assuming that interest rate parity holds in all markets,which of the following statements is most CORRECT?

• A) The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 90-day forward market.
• B) The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 180-day forward market.
• C) The yen-dollar exchange rate in the 90-day forward market equals the yen-dollar exchange rate in the 180-day forward market.
• D) The yen-dollar exchange rate in the 180-day forward market equals the yen-dollar exchange rate in the 90-day spot market.
• E) The relationship between spot and forward interest rates cannot be inferred.

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End Slavery

The movement to end slavery encompasses all historical and contemporary efforts aimed at abolishing the practice of slavery and the slave trade, which has taken many forms globally over centuries.

Unusual Death

Deaths that occur under circumstances considered out of the ordinary or mysterious, often leading to speculation or investigation.

Emancipation

The process of being freed from legal, social, or political restrictions; historically often refers to the freeing of slaves.

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Abraham Lincoln, the 16th President of the United States, who led the country during the Civil War and played a key role in the abolition of slavery.