Trading in Foreign Exchange. (Answer All. Thank you!)

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 128.75 per dollar, and the 60-day forward rate is 133.45 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? $5.39 million $4.85 million $5.12 million $6.47 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 in 60 days today Depositors earn an interest rate of 4.5% annually at the Hack Wellington Bank. The bank charges entities that take loans an interest rate of 12.0%. These transactions are considered to be secondary claims, but they take place in the primary markets. What will Hack Wellington Bank's earnings equal in this transaction? 9.0% 16.5% 7.5% -7.5%