Question
15) Jasper Pernik is a currency speculator who enjoys betting on changes in the foreign currency exchange market. Currently the spot price for the Japanese
15) Jasper Pernik is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the spot price for the Japanese yen is 129.87/$ and the 6- month forward rate is 128.53/$. Jasper thinks the yen will move to 128.00/$ in the next six months. If Jasper's expectations are correct, then he could profit in the forward market by ________ and then ________. A) buying yen for 128.00/$; selling yen at 128.53/$ B) buying yen for 128.53/$; selling yen at 128.00/$ C) There is not enough information to answer this question. D) He could not profit in the forward market.
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