Identify the graph of the indirect exchange rate between the U.S. dollar and Japanese yen for the past 120 days.
a. When was the dollar strongest against the yen? When was it the weakest?
b. If you converted $1,000 into yen when the indirect rate was the highest and converted back when it was the lowest, what return would you have made on your investment?
c. Use the EAR formula on page 239 to convert the rate calculated in (b) into an annual rate. Use a 365-day year.