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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 411.49+0.6%Jan 8 4:00 PM EST

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To: elmatador who wrote (15509)3/18/2007 5:56:35 AM
From: Haim R. Branisteanu  Read Replies (1) of 219162
 
By buying yen against the EUR cost you 3.5% a year as an insurance and 5% a year against the US not expensive for those that are long commodities or other high yielding assets.

Want to avoid paying interest now - buy a forward transaction and interest is already deducted.

Indication EUR/JPY now is 1.55.46 / 51

6 months forward is 152.94 / 153.03

USD JPY spot is 116.74 / 116.78
6 moths forward USD is 114.10 / 114.18 or 2.62 yen

you can soften the blow by writing short term call option on the yen - ATM - Put USD /Call Yen is 1.51 for one month
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