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Which is true of the foreign exchange

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Reference no: EM132810103

Problem 1: When the yen has a higher interest rate than the U.S. dollar, which of the following is true of the foreign exchange (FX) rate?

a. The yen will sell on par in the forward market against the U.S. dollar
b. The yen will sell at a premium in the spot market against the U.S. dollar
c. The yen will sell at a discount in the forward market against the U.S. dollar
d. The yen will sell at a premium in the forward market against the U.S. dollar

Reference no: EM132810103

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