If You Buy Yen Forward When the Yen Is Selling

question 100

Multiple Choice

If you buy Yen forward when the Yen is selling at a forward premium, you will get:

• A)more Yen than if you buy on spot market.
• B)fewer Yen than if you buy on spot market.
• C)the same number of Yen as on the spot market, but with a lower commission.
• D)the expectation of more Yen, but the difference is not locked in.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various price levels.

Marginal Cost

The supplementary expense required to manufacture an additional unit of a product or service.

Crude Oil Price

Refers to the cost per barrel of unrefined petroleum, which fluctuates based on global supply and demand dynamics, geopolitical tensions, and market speculations.

Cheat

An act of dishonesty or unfairness to gain an advantage.