2. The annualized interest rate on deposits in Canada is 10%. In yen deposits in Japan, it is 7.5%. The spot rate of the Yen is 130Yen/$. a. Which currency is expected to depreciate in six months and by how much? b. If the covered interest parity condition holds, what is the six-month forward Yen/\$ exchange rate? c. A Canadian importer plans to pay 1 million yen six months from now. She buys a forward contract and places $x in a Canadian bank deposit so that the proceeds will be used to pay for the forward yen later. Calculate x