What is the potential all-in USD return on the carry trade ? I am facing issue in this, kindly help. Answer is 0.83%.
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Question from core reading example 4 JPY/GBP Spot rate = 129.67 1 yr JPY Libor = 0.10% 1 yr GBP Libor = 3.00% If uncovered IRP holds, what will be the JPY/GBP exchange rate after 1 year? (A) 126.02 (B) 129.67 ...