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Alex is a currency speculator who enjoys betting on changes in the foreign currency exchange market. Currently the spot price for the Japanese yen is
Alex is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the spot price for the Japanese yen is Y129.87/U$ and the 6-month forward rate is Y128.53/U$. And Alex believes that the yen will move to Y128.00/U$ in the next 6 months. How could he profit from her belief by using the forward market, that is, should he buy or sell the Japanese yen forward?
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