A foreign currency ___________ is a contract giving the purchaser (the buyer) the right, but not the obligation, to buy or sell a given amount of foreign exchange at a fixed price per unit for a specified time period (until the maturity date). The________________________, is the cost of the option

		premium or option price; option
		option ; premium or option price
		forward; premium or option price;
		premium or option price; forward

1. 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 buys $100,000 worth of yen at today's spot price her potential gain is ________ and her potential loss is ________.

   		A) $100,000; unlimited
   		B) unlimited; unlimited
   		C) $100,000; $100,000
   		D) unlimited; $100,000