When short-term interest rates become lower in Tokyo than in New York, interest arbitrage operations will most likely result in a(n)
A) increase in the spot price of the yen.
B) increase in the forward price of the dollar.
C) sale of dollars in the forward market.
D) purchase of yen in the spot market.

Question

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The Answer of When short-term interest rates become lower in Tokyo than in New York, interest arbitrage operations will most likely result in a(n)
A) increase in the spot price of the yen.
B) increase in the forward price of the dollar.
C) sale of dollars in the forward market.
D) purchase of yen in the spot market.

When Short-Term Interest Rates Become Lower in Tokyo Than in New