wizofoz

Here is my take
Jap guy sells Y200 to get GBP1
Invest GBP 1 for a year @ 5% to get GBP 1.05
Sell GBP 1.05 at year end spot rate to get 1.05*190 = Y199.5

Your return is Y199.5/Y200-1 = -0.25%

prophets has the same answer but the owrong order
Yo essential started with with 1GBP and end up with GBP 0.9975
so 0.9975 -1 = -.25%

I prefer the logical route so I never get confused, its the same principal for all currency concepts
Fwd, Future, Swaps, Eco and PM