Question

The value of a Japanese yen futures contract will go down when Group of answer choices...

The value of a Japanese yen futures contract will go down when
Group of answer choices
US interest rates go up
Japanese interest rates go up
the dollar strengthens against the yen
the dollar weakens against the yen

Homework Answers

Answer #1

Ans- c

Future contact are the legal agreement to buy or sell a perticular asset or security at a predetermined price at the specified future date. The vsluof Japanese yen future contract will do down as the se the dollar strengthen against yen. Due to increase in dollar value yen value will further decrease so we can get more yen with the same amount of money today against the stated in contract, so that it will not be profitable to exercise the future contract of Japanese yen.

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