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Assume the spot rate for the Japanese yen currently is 1 0 2 . 3 2 per $ 1 and the one - year forward

Assume the spot rate for the Japanese yen currently is 102.32 per $1 and the one-year forward rate is 102.69 per $1. A risk-free asset in Japan is currently earning 2.5 percent. If interest rate parity holds, approximately what rate can you earn on a one-year risk-free U.S. security?
2.14%
2.96%
1.63%
2.01%
1.01%

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