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Green Rabbit Transportation Inc., a U.S. company, produces and exports industrial machinery overseas. It recently made a sale to a Japanese manufacturing firm for 8689

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Green Rabbit Transportation Inc., a U.S. company, produces and exports industrial machinery overseas. It recently made a sale to a Japanese manufacturing firm for 8689 million, but the Japanese firm has 60 days before it must make the payment to Green Rabbit Transportation Inc. The spot exchange rate is $129.20 per dollar, and the 60 -day forward rate is $134.56 per dollar. Is the yen selling at a premium or at a discount in the forward market relative to the U.S. dollar? The yen is trading at a discount in the forward market. In the forward market, the yen is trading at a premium. If the customer pays Green Rabbit Transportation Inc. the Y689 millon today, how much will Green Rabbit Transportation tnc, receive in dollars? $4.80 milition $5.86 milion $5.33 miltion $5.60 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

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