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18. The current five-year Yen () rate is 6% per annum (compounded annually). The five-year US$ rate is 8.5%. What is the implied forward premium

18. The current five-year Yen () rate is 6% per annum (compounded annually). The five-year US$ rate is 8.5%. What is the implied forward premium or discount of the over the current spot rate for a five-year forward contract?

(a) 4.17% premium

(b) 18.46% discount

(d) 12.36% premium

can some one show my the process?

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