(Interest rate parity) On August 8th the three-month risk-free rate of interest in the United States was 3.40 percent and it was 2.60 percent in Japan. If the spot exchange rate were $0.010798/¥, what would you expect the forward exchange rate to be? The expected 3-month forward exchange rate should be $/yen. (Round to six decimal places.) C

The one-year risk-free rate in the U.S. is 4.340 percent and the one-year risk-free rate in Mexico is 6.64 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.366/$. What is the spot exchange rate? Assume interest rate parity holds.     Multiple Choice MXN13.969/$ MXN14.939/$ MXN12.366/$ MXN12.639/$ MXN12.099/$

On August 8th the six-month risk - free rate of interest in Switzerland was 3 percent. If the spot exchange rate for dollars for Swiss francs is 0.9241 and the six-month forward exchange rate is 0.9268, what would you expect the U.S. six-month risk - free rate to be? The U.S. six- month risk - free rate is . . . . . . %

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The Cambodian interest rate is 6% and the Vietnam interest rate is 7%. The spot exchange rate of one Cambodian riel is 5.6 Vietnamese dong (VND) and the one-year forward rate of riel is VND5.7.  If there now occurs a change in the interest differential such that money flows from Vietnam to Cambodia in a covered interest arbitrage, as a result of this money flow the forward riel exchange-rate will _____. a. depreciate b. appreciate c. remain the same

The spot rate between Japan and the U.S. is ¥100.37 = $1, while the one-year forward rate is ¥99.97 = $1. A one-year risk-free security in the U.S. is yielding 3.8 percent. What is the rate of return on a one-year risk-free security in Japan assuming that interest rate parity exists?