Trading in foreign exchange aa Aa What are spot rates 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 $694 million, but the Japanese firm has 60 days before it must make the payment to Randall Corp. The spot exchange rate is $132.78 per dollar, and the 60-day forward rate is $134.72 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 $694 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__________