Question 5You are given the following information by Apple PLCSpot Exchange Rate ($


Question 5

You are abandoned the forthcoming instruction by Apple PLC

Spot Change Admonish ($

/ ¥) $1.00 / ¥100.00

USA Share Admonish 7.5%

Japan Share Admonish 2%

USA Inflation Admonish 4%

Japan Inflation Admonish 1%

a) Using the share admonish equality system, determine:

i. Whether the $ achieve prize or depreciate

ii. The new $ / ¥ change admonish behind diminution or appreciation

b) Briefly clear-up whether at equilibrium, investing in Japan achieve geneadmonish over avail for a US

investor than investing in the US.

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