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Business, 10.08.2021 01:00 Rattley6223
Let RUS be the annual risk-free rate in the United States, RJ be the risk-free rate in Japan, F be the futures price of $/yen for a 1-year contract, and E the spot exchange rate of $/yen. Which one of the following is true?
A. if RUS > RUK, then E > F.
B. if RUS < RUK, then E < F.
C. if RUS > RUK, then E < F.
D. if RUS < RUK, then F = E.
E. There is no consistent relationship that can be predicted.
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Answers: 2
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Let RUS be the annual risk-free rate in the United States, RJ be the risk-free rate in Japan, F be t...
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