3. trading in foreign exchange

3. Trading in foreign exchange What are spot rates and forward rates! Green Rabbit Transportation Inc., a U.S. company produces and exports industrial machinery oversett recently made a leto a Japanese manufacturing firm for X694 million, but the Japanese firm has 60 days before it must make the payment to Green Rabbit Transportation Inc. The spot exchange rate is 127.50 per dollar, and the 60-day forward rate is 132.30 per dollar. Is the yon selling at a premium or at a discount in the forward market relative to the U.S. dollar In the forward market, the yen is trading at a premium The yen la trading at a discount in the forward market. Ir the customer pays Green Rabbit Transportation Inc. the 694 million today, how much will Green Rabbit Transportation Inc. receive in dollar 35.44 million 56.80 million 54.62 million If the customer pays Green Rabbit Transportation Inc. the 1694 million today, how much will Green Rabbit Transportation Inc. receive in dollars? $5.44 million O $6.80 million $4.62 million 35.1 million Assuming that the forward market is correct and the spot exchange rate in 60 days will equal the 60-day forward exchange rate today. Green Rabbit Transportation Inc. would get more dollars if the Japanese firm paid off its account