Solved: Forward rate to be between japanese yen and british pounds, Finance Basics

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Forward rate to be between japanese yen and british pounds

Problem:

The Current Exchange Rate between Japan and U.K. is One British Pound Equals 150 Japanese Yen. The one year Annual Interest Rate in Japan is 1%, while the Annual Interest Rate in U.K. is 4%.

Given this, what would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now?

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Finance Basics: Forward rate to be between japanese yen and british pounds

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Finance Basics: Forward rate to be between japanese yen and british pounds

Reference No:- TGS02070725

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