Jasper Pernik 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/$. Jasper would earn a higher rate of return by buying yen and selling a forward contract than if he had invested her money in 6-month US Treasury securities at an annual rate of 2.50%.
Indicate whether the statement is true or false.


Answer: FALSE

Business

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