Description
In your own words answer the following question. DO NOT COPY OR PASTE FROM ANY SOURCE. Use citations with accesible link.
Do a research on nternational Parity Relationships and Forecasting Foreign Exchange Rates and answer the question below.
Title: INTEREST RATE PARITY .
The Current Exchange Rate between Japan and U.K. is One British Pound Equals 120 Japanese Yen. The one year Annual Interest Rate in Japan is 1%, while the Annual Interest Rate in U.K. is 3% .
Given this, what would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now? Explain your steps.