Jasper Pernik Is a Currency Speculator Who Enjoys "Betting" on Changes

question 48

Multiple Choice

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/$. Jasper thinks the yen will move to ¥128.00/$ in the next six months. Jasper should ________ at ________ to profit from changing currency values.

• A) buy yen; the forward rate
• B) buy dollars; the forward rate
• C) sell yen; the forward rate
• D) There is not enough information to answer this question.