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nrod1120 nrod1120
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Sam has put aside C$5,000 for his travel to Japan in a year from now. He could invest the money in Canada and earn 4.5%, and then convert it to Japanese yen when he leaves. Alternatively, Sam could convert the funds to Japanese yen (JY) and earn a 4.85% return on a Japanese investment today. Which approach should he take if the currency spot rate is C$ / JY = 0.008872 and the one-year forward rate is 0.008738?
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
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moraamoraa
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A month ago
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