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

question 19

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's expectations are correct, then she could profit in the forward market by ________ and then ________.

• A)buying yen for ¥128.00/$; selling yen at ¥128.53/$
• B)buying yen for ¥128.53/$; selling yen at ¥128.00/$
• C)There is not enough information to answer this question
• D)She could not profit in the forward market.

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Definitions:

Immoral/Unethical Acts

Behaviors or actions that are considered wrong or unacceptable based on societal norms or ethical standards.

Non-Deontology

A term incorrectly formed and likely refers to ethical theories not based on duty or rules, such as consequentialism or virtue ethics; however, the correct term does not exist in standard ethical discussions, so I'll mark it as NO.

Intrinsic Worth

It refers to the inherent value that something has in itself, irrespective of its utility to others.

Human Beings

Members of the species Homo sapiens; individuals who possess rationality and consciousness.