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Suppose that Japanese yen futures are currently trading at a premium against the dollar

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Suppose that Japanese yen futures are currently trading at a premium against the dollar. Based on the covered interest rate parity, it can most likely be concluded that:

Select one:

a.

The exchange rate risk of the Japanese yen is low

b.

yen interest rates are higher than those of the dollar and therefore the yen must appreciate

c.

Yen interest rates are lower than those of the dollar, so the yen must appreciate

d.

None of the above