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

question 84

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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. If Jasper buys $100,000 worth of yen at today's spot price her potential gain is ________ and her potential loss is ________.


Definitions:

Reasonable Notice

The sufficient and fair amount of time one party must give another to prepare for or respond to an action, often legally defined in various contexts.

Termination

The act of ending or concluding an agreement, contract, or employment relationship.

Dismiss

To terminate or end something formally, such as employment or legal actions.

Employer

An individual or organization that hires people to work for them in exchange for wages or salary.

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