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True or False: Jasper Pernik is a currency speculator who enjoys betting on changes in the foreign currency exchange market. Currently the spot price for
True or False: Jasper Pernik is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the spot price for the Japanese yen is 129.87/$ and the 6-month forward rate is 128.53/$. Jasper would earn a higher rate of return by buying yen and selling a forward contract than if he had invested her money in 6-month U.S. Treasury securities at an annual rate of 2.50%.
Answer: False
Please explain why.
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