A Japanese investor can earn a 3 percent annual interest rate in
Japan or about 5.5 percent per year in the United States. If the
spot exchange rate is 0.5 dollar per yen and the exchange rate in
the future is expected to be 0.7 dollar per yen, is it profitable
to borrow money in Japan and invest in USA? Please show your
work.
A Japanese investor can earn a 3 percent annual interest rate in Japan or about 5.5 percent per year in the United State
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answerhappygod
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A Japanese investor can earn a 3 percent annual interest rate in Japan or about 5.5 percent per year in the United State
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