Andrea Cujoli Is a Currency Speculator Who Enjoys "Betting" on Changes

question 37

Multiple Choice

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

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

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Definitions:

Non-Existent Employee

A fabricated or fictitious employee created on company records, usually for fraudulent purposes like embezzlement.

Borne

Carried or transported by; often used in the context of who is responsible for paying for something, e.g., "costs borne by the company."

Impostor

An impostor is someone who deceives others by assuming a false identity or role to gain certain benefits or advantages.

Negotiate

To engage in discussions aimed at reaching an agreement, especially in the context of contracts, prices, or terms of an arrangement.