18. Let the U.S> dollar - yen spot rate be Y120/$. Also, let the 180-day forward exchange rate be Y124.8/$. Then the yen is selling at a per annum ____ of _____

A. premium; 8.00% B. discount; 8.00% C. premium; 6.30% D. discount; 1.57%

21. Suppose it is January 1, 1994, and the Deutsche mark revalues from $0.31 at the beginning of the year to $0.35 at the end of the year. Inflation during the year is 5.2% in the U.S. and 3.5% in Germany. What is the real devaluation (-) or real revaluation (+) of the Deutsche mark during the year? A. -2.60% B. 11.02% C. 9.10% D. -7.30%