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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
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 132/$ and the 6-month forward rate is 128/$. Jasper thinks the yen will move to 128/$ in the next six months. If Jasper buys $81,000 worth of yen at today's spot price and sells within the next six months at 128/$, he will earn a profit of:
Profit =
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