Caleb Fajardo and Yen-Dollar Parity. Caleb Fajardo is attempting to determine whether U.S Japanese firanciat condtions are at party. The curnent spot rale is a fan ve9 00=51.00, whilo deposit rase is 9.497% a. Diagram and calculate whether imternational parity condifions hold between Japan and the United States. b. Find the forecasted change in the Japanese yen to US dollar (=$1,00) exchange rate one year from now a. Diagram and calculate whether international parity concitions hold between Japan and the Uniled States. The forecast difference in rates of infation is % (U.S. higher than dapan), (Round to one decimal place.) The difference in nominal inferest rates is the (higher in US). (Round to one decimal place) The forward premium on foceign currency is 5 (Japanese yen at a premium). (Round to one decimal place.) The forecast change in spot exchange rase is / (dollar expected to weaken). (Round to one decimal place) As is always the case weh parity conditions, the future spot rale is implicily forecast to be equal to the forward rate, the impled rate from the internahonal Fighec eflect, and ste rate inclied by purchasing power party. According to Derek's calculations, the markets are indeed in equilbrium - parity This stasement is (Select from the drop-down menu) b. Find the forecasted change in the Japanese yen to U.S dolar (=$100) exchange rate one year from now. The forecasted change in the Japanese yen/U.S. dollar (W/S) exchange rate one year from now is 4 . (Round to one decimai place.)