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Suppose the spot and three-month forwards rate for the yen per US dollar are 80.13 and 78.96 respectively. This would result in : a) A

Suppose the spot and three-month forwards rate for the yen per US dollar are 80.13 and 78.96 respectively. This would result in : a) A yen is worth more. b) The US dollar is selling at premium relative to the Japanese yen. c) The Japanese currency is expected to depreciate in value. d) The interest rate in Japanese is higher than the United States.

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