(Covered Share Trounce Parity, 5pts) You are confrontment the aftercited remodel trounces and share trounces.
Assume you can attribute $1,000,000 or equiponderant whole of yen. Show how you can emolument from the
covered share arbitrage. Compute your emolument in dollar and yen respectively.
Spot trounce (¥/$) 115.4
180-day advanced trounce (¥/$) 120.7
180-day U.S. dollar share trounce 4.00%
180-day yen share trounce 2.00%