Assume that annual interest rates are 3 percent in the United States and 8 percent in Japan. The interest rates are continuously compounded. An FI can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot exchange rate is JPY 125.000 per one USD. Assuming the no-arbitrage principle holds, then as per the covered interest rate parity theorem, what should be the one-year forward exchange rate expressed as number of JPY per one USD, at time t=0 (now)? That is, what is F₀^T? Here, T is one-year.

Hint: REMEMBER, you need to answer number JPY per one USD. Your answer will be a number between 100 and 150. Round off to at least four decimals.