Forward exchange rates:


Forward Exchange Rates: Use the information in Figure 31.1 to answer the following questions:
a. What is the six-month forward rate tor the Japanese yen in yen per US dollar? Is the yen selling at a premium or a discount? Explain

b. What is the three-month forward rate for British pounds in US dollars per pound? Is the dollar selling at a premium or a discount? Explain


c. What do you think will happen to the value of the dollar relative to the yen and the pound, based on the information in the figure? Explain.

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