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A US bank manager believes the Japanese yen will appreciate relative to the dollar over the next three months and plans to use 4 Japanese
A US bank manager believes the Japanese yen will appreciate relative to the dollar over the next three months and plans to use 4 Japanese yen forward contracts to trade based on this belief. Each contract has 10 million yen attached and carries a forward rate of $.005/yen. Find the manager's profit/loss from her forward contracts (in USD) if the spot rate is $.006/yen when the contracts expire. Round intermediate steps to four decimals. O-40,000 O 40,000 O 10,000 O-10,000 O None of the above
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