What are spot rates and forward rates? Purple Panda Importers, a U. S. company, produces and exports industrial machinery overseas. It recently made a sale to a Japanese manufacturing firm for ¥625 million, but the Japanese firm has 60 days before it must make the payment to Purple Panda Importers The spot exchange rate is ¥132.78 per dollar, and the 60-day forward rate is ¥134.72 per dollar. Is the yen selling at a premium or at a discount in the forward market relative to the U. S. dollar? The yen is trading at a discount in the forward market. In the forward market, the yen is trading at a premium. If the customer pays Purple Panda Importers the ¥625 million today, how much will Purple Panda Importers receive in dollars? $5.42 million $4.24 million $5.89 million $4.71 million Assuming that the forward market is correct and the spot exchange rate in 60 days will equal the 60-day forward exchange rate today, Purple Panda Importers would get more dollars if the Japanese firm paid off its account .