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Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 1.78 percent and the one-year risk-free rate in Japan is 2.35 percent.

Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 1.78 percent and the one-year risk-free rate in Japan is 2.35 percent. The spot rate between the Japanese yen and the U.S. dollar is 108.45/$. What is the one-year forward exchange rate?

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