Spot and forward rates

Randall Corp., a U.S. company, produces and exports industrial machinery overseas. It recently made a sale to a Japanese manufacturing firm for yen694 million, but the Japanese firm has 60 days before it must make the payment to Randall Corp. The spot exchange rate is yen132.78 per dollar, and the 60-day forward rate is yen134.72 per dollar. Is the yen selling at a premium or at a discount in the forward market relative to the U.S. dollar? Discount Premium If the customer pays Randall Corp. the yen694 million today, how much will Randall Corp. receive in dollars? $5.23 million $6.28 million $6.01 million $4.97 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, Randall Corp. would get more dollars if the Japanese firm paid off its account