On August 8th the three-month risk-free rate of interest in the United States was 3.75 percent and it was 3.00 percent in Japan. If the spot exchange rate were $0.010798/yen, what would you expect the forward exchange rate to be?

The answer is 0.01082

Explanation:

The formula for forward exchange rate is:

F = S x 1+rd/1+rf

where F is the forward exchange rate

S is the spot exchange rate(0.010798)

rd is the foreign currency interest rate(3% or 0.03)

rf is the domestic interest rate(3.75% or 0.0375

Month is 3 months(90days) and total number of days in a year is 360days.

Find find the attached file for calculation

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3