1. Judy 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/$. Judy thinks the yen will move to ¥128.00/$ in the next six months. If Judy's expectations are correct, then she could profit in the forward market by ________ and then ________.
a. She could not profit in the forward market.
b. There is not enough information to answer this question.
c. buying yen for ¥128.53/$; selling yen at ¥128.00/$
d. buying yen for ¥128.00/$; selling yen at ¥128.53/$
2. What is the APR cost of skipping the discount on purchases that have terms of 1.5/12, net 35, and "stretching the payable," and paying on day 60?
a. 6.1448%
b. 6.3047%
c. 7.6194%
d. 7.6810%
e. 7.9421%
f. 9.2640%
g. 9.6300%
h. 11.1168%
i. 11.5799%
j. 11.6646%
k. 12.1791%
l. 15.5187%
m. 15.8811%
n. 16.6053%
o. 17.0714%
p. 18.4343%
q. 20.1317%
r. 24.1669%
s. 27.1054%
t. none of the above