Complete your Week 4 Assignment, “Interest Rate Parity.”
TheCurrentExchangeRatebetweenJapanandU.K.isOneBritishPoundEquals150JapaneseYen.TheoneyearAnnualInterestRateinJapanis1%,whiletheAnnualInterestRateinU.K.is4%.
Giventhis,whatwouldyouexpecttheForwardRatetobebetweenJapaneseYenandBritish Pounds,oneyearfromnow?Explainyourstepsintheworkspaceonthenextpage.