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A Fund Has Assets Denominated in Euros and Liabilities in Yen

Question 32

Multiple Choice

A fund has assets denominated in euros and liabilities in yen due in six months.The six month forward rate for euro is $1.36 per euro and the six month forward rate for the yen is 121 yen per dollar.The six month forward rate for the euro versus the yen should be ________ per euro.


A) ¥88.97
B) ¥145.34
C) ¥154.67
D) ¥164.56

Correct Answer:

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