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QUESTION

 Listen to the narrated PowerPoint for the Chapter 6 Mini-Case: Mrs. Wantanabe and the Japanese Yen Carry Trade. This case discusses the mechanics and profitability of the carry trade and how, when gl

 Listen to the narrated PowerPoint for the Chapter 6 Mini-Case: Mrs. Wantanabe and the Japanese Yen Carry Trade. This case discusses the mechanics and profitability of the carry trade and how, when global economic conditions are right, profits are possible.  However, these investment strategy is not without its risks. 

 Please provide at least 1 (one) well- written and well-reasoned answer to the following discussion questions  

Discussion Questions:

  1. Why are interest rates so low in the traditional core markets of USD and EUR?
  2. What makes this “emerging market carry trade” so different from traditional forms of uncovered interest arbitrage?
  3. Why are many investors shorting the dollar and the euro?

 Submission Instructions:All responses in this discussion forum must be professional, well-reasoned, well-written, and free from profanity.  This discussion assignment should reflect the fact that this is a written product for a graduate professional program.  All responses should be professional, and if you disagree with a submission, keep it professional.  Make any criticisms constructive.  If ideas are not your own, please reference them with the appropriate internet link or written resource link.   

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