Consider the yen carry trade example done in lecture. Specifically, use the same current exchange rate and given USD and JPY interest rates, and assume a short position of ¥100,000,000 to fund a long position in dollars. What are the profits (in dollars) of this currency trading strategy if one year from now the exchange rate is ¥80.00/$?

Consider the yen carry trade example done in lecture. Specifically, use the same current
exchange rate and given USD and JPY interest rates, and assume a short position of
¥100,000,000 to fund a long position in dollars. What are the profits (in dollars) of this
currency trading strategy if one year from now the exchange rate is ¥80.00/$?

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