Assuming zero transaction costs

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Assume that a September futures contract on Japanese Yen was avail­able in March for $.050 per Yen. Also assume that forward contracts were available for the same settlement date at a price of $.045 per Yen. How could speculators capitalize on this situation, assuming zero transaction costs? How would such speculative activity affect the difference between the forward contract price and the futures price? Be specific in describing the transactions involved.

Reference no: EM131577377

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