If You Buy Yen Forward When the Yen Is Selling

question 70

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:

Bailee Liability

refers to the legal responsibility of a bailee (a person or entity who temporarily holds property belonging to another) to take reasonable care of the goods in their custody.

Abandoned Property

Abandoned property refers to assets or possessions left by an owner who has intentionally relinquished all rights to its control and ownership.

Engagement Ring

A ring traditionally given in Western cultures by a person to their fiancée as a sign of commitment to marry.

Conditional Gift

A present or donation given with specific stipulations that must be met for the recipient to retain the gift.