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

question 35

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

• A)$100,000; unlimited
• B)unlimited; unlimited
• C)$100,000; $100,000
• D)unlimited; $100,000

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Definitions:

Probability Sampling

A sampling technique that ensures every member of a population has a known and equal chance of being selected for the sample.

Virtual Modeling

The use of computer simulations and digital models to create a virtual representation of a product, environment, or set of conditions.

Information Technology

The use of computers, telecommunications, and other devices to store, retrieve, transmit, and manipulate data, often in the context of business operations.

External Data Sources

These are sources of data that originate outside of the organization and can include public data sets, purchased data, or data shared by partners.