1-year nominal risk free rate in dollar area:5.06%1-year nominal risk free rate in JPY area: 7.12%Real risk free rate is 3%.

What is the expected inflation rate in US and Japan? a. 2%; 3% b. 2%; 4% c. 3%; 2% d. 3%; 4%.

What is the interest rate differential and inflation rate differential between US and Japan respectively? a. 0.0192; 0.0196; b. 0.0192; 0.0192; c. 0.0243; 0.0257; d. 0.0257; 0.0257;