Today,you Purchased 125,000 Yen 6-Months Forward at JPY130 = USD1

question 46

Multiple Choice

Today,you purchased 125,000 yen 6-months forward at JPY130 = USD1 per dollar.The spot rate today is JPY128 =USD1.If the yen appreciates by 10% over the next six months,how many dollars must you pay to acquire the 125,000 yen?

• A) $0
• B) $961.54
• C) $976.56
• D) $1,085.07

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Cross-Sectional Study

A study in which people (or animals) of different ages are compared at a given time.

Longitudinal Study

A research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time.

Gender Relationships

The social and cultural constructs that define the interactions, roles, behaviors, and expectations between genders within a society.