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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 129.37/$ and the 6-month forward rate is 129.83/$. Jasper thinks the yen will move to 130.00/$ in the next six months. Jasper should ________ at ________ to profit from changing currency values.
A) buy dollars; the forward rate
B) buy yen; the spot rate
C) buy yen; the forward rate
D) sell dollars; spot market rate.
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