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Jasper Pernik Is a Currency Speculator Who Enjoys "Betting" on Changes

question 84

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Jasper Pernik 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/$. Jasper thinks the yen will move to ¥128.00/$ in the next six months. If Jasper buys $100,000 worth of yen at today's spot price her potential gain is ________ and her potential loss is ________.


Definitions:

Firm

A business organization, such as a company or partnership, engaged in commercial, industrial, or professional activities.

Positive Abstractions

Conceptual ideals or values that are perceived as beneficial or constructive to individuals or society.

Ethical Ideations

The process of forming and contemplating ideas, principles, or standards of right conduct.

Desirable

An attribute or quality that makes something preferred or pleasing to individuals or groups.

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