This Morning, You Purchased 125,000 Yen Ahead 6 Months at a Price

question 10

Multiple Choice

This morning, you purchased 125,000 yen ahead 6 months at a price of 130 yen per dollar. The spot rate today is 128 yen per dollar. In six months, how many dollars must you pay to acquire the 125,000 yen?

• A) $0
• B) $961.54
• C) $976.56
• D)$968.99

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Interest computation technique where the sum earns interest twice annually, compounding the overall growth over time.

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The cost of borrowing money or the income received from lending money, usually expressed as a percentage of the principal.