What is the expected spot rate of ¥/$(Canadian) one year from now if the current spot rate is ¥66/$and the Yen is selling one-year forward at ¥70/$?
A)¥78.9/$
B)¥98.0/$
C)¥66/$
D)¥70/$

Question

Quizplus · Accepted Answer

The expected spot rate one year from now would be the same as the one-year forward rate, which is ¥70/$, because the forward rate often serves as the market's expectation of the future spot rate.

What Is the Expected Spot Rate of ¥/$(Canadian) One Year