Currently the spot price for the Japanese yen is ¥129.87/$ and the 6-month forward rate is ¥131.53/$. Andrea thinks the yen will move to ¥128.00/$ in the next six months. Suppose Andrea is a currency speculator who enjoys “betting” on changes in the foreign currency exchange market, Andrea should _______ to profit from changing currency values.
|(a) buy yen|
|(b) buy dollars|
|(c) sell yen|
|(d) wait and don’t trade|
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