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elf_fu elf_fu
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6 years ago
Your company can get yen loans for 2.0%. Dollar rates on the same loans are 4.5%. The spot yen per dollar exchange rate is 104. The forward rates for years 1 thru 4 are, 101.51, 99.08, 96.71, and 94.40, respectively. What is the present value of the market-maker's net cash flow if spot rates are 102 instead?
A) $188.59
B) $206.43
C) $219.96
D) $242.06
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Derivatives Markets

Derivatives Markets


Edition: 3rd
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phuongha2892phuongha2892
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6 years ago
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elf_fu Author
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6 years ago
Thank you phuongha2892
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