If you can enter into a one forward exchange contract of
One-year interest rates are 2% in Japan and 4% in the United States. The current exchange rate is 120 yen per dollar. If you can enter into a one forward exchange contract of 115 yen per dollar, how can you arbitrage the situation?
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one-year interest rates are 2 in japan and 4 in the united states the current exchange rate is 120 yen per dollar if
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