When short-term interest rates become lower in Tokyo than in New York, interest
ID: 1176434 • Letter: W
Question
When short-term interest rates become lower in Tokyo than in New York, interest arbitrage operations will most likely result in a(n)? Sale of dollars in the forward market Increase in the spot price of the yen Purchase of yen in the spot market Increase in the forward price of the dollar When short-term interest rates become lower in Tokyo than in New York, interest arbitrage operations will most likely result in a(n)? Sale of dollars in the forward market Increase in the spot price of the yen Purchase of yen in the spot market Increase in the forward price of the dollar Sale of dollars in the forward market Increase in the spot price of the yen Purchase of yen in the spot market Increase in the forward price of the dollar Sale of dollars in the forward marketExplanation / Answer
Sale of dollars in the forward market