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On July 1 , 2 0 1 1 , a company enters into a forward contract to buy 1 0 million Japanese yen on January

On July 1,2011, a company enters into a forward contract to buy 10 million Japanese yen on January 1,2012 at a rate 0.0120 USD/JPY. On September 1,2011, it enters into a forward contract to sell 10 million Japanese yen on January 1,2012 at 0.0122 USD/JPY. Describe the payoff from this strategy.
Question 7 options:
-2,000 USD
2,000 USD
2000 JPY
-2000 JPY

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