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During a period in which most major central banks increased interest rates, Japan kept their rates at a relatively low level. Believing that Japan could
During a period in which most major central banks increased interest rates, Japan kept their rates at a relatively low level. Believing that Japan could not continue to maintain low interest rates as their currency depreciated in value, a professional trader decided to take a large position in the yen on the anticipation that Japan would eventually increase rates. What type of strategy did the trader employ? Special situation strategy Event-driven strategy Directional strategy Arbitrage strategy
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