A business executive needs to pay for a major product from Japan in two months (60 days). The ForEx (short for foreign exchange) spot rate is USD1 = JPY 110 (Japanese yen) and the 60 day forward rate...

Simply Select the correct option and explain it

Extracted text: A business executive needs to pay for a major product from Japan in two months (60 days). The ForEx (short for foreign exchange) spot rate is USD1 = JPY 110 (Japanese yen) and the 60 day forward rate is USD1 = JPY 111. What does this mean? The US dollar is appreciating. He should wait 60 days because the currency will be cheaper then. The US dollar is depreciating. He should wait 60 days because the currency will| be cheaper then. The US executive can buy JPY today at 110 yen per dollar, or buy a forward contract that locks his price at 111 yen. This gives him assurance today regarding the price he will have to pay when payment is due. The US executive can buy JPY today at 110 yen per dollar, or wait for 60 days and buy it at 111 yen. It's his choice.