Use the Following Information to Answer Questions 10-12

question 61

Multiple Choice

Use the following information to answer questions 10-12.
Table 6.2: Spot and Forward Exchange Rates on May 5, 2012.

-Refer to Table 6.2.Comparing the yen's forward rates against the yen's spot rate,over the period of a forward contract,we would expect the yen's spot rate to:

• A) remain constant against the dollar
• B) appreciate against the dollar
• C) depreciate against the dollar
• D) depreciate against the dollar in the first 30 days and then appreciate afterward.

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