Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 3.22 percent and the one-year risk-free rate in Japan is 3.60 percent. The spot rate between the Japanese yen and the U.S. dollar is 112.23/$. What is the one-year forward exchange rate?

Multiple Choice

114.51/$

112.23/$

111.82/$

112.64/$