If the spot exchange rate is 101 what is the one-year


A Japanese investor can earn a 2% risk-free rate of return in Japan or a 4.5% risk-free rate of return in the United States.

If the spot exchange rate is ¥101/$, what is the one-year forward rate that will make an investor indifferent between the U.S. and the Japanese investments?

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Financial Management: If the spot exchange rate is 101 what is the one-year
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