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Help on this one (q3) please Forecast inflation is 1.095% for Japan, and 5.897% for the United States. The 360-day euroyen deposit rate is 4.704%,

image text in transcribedHelp on this one (q3) please

Forecast inflation is 1.095% for Japan, and 5.897% for the United States. The 360-day euroyen deposit rate is 4.704%, and the 360 -day eurodollar deposit rate is 9.503%. a. Diagram and calculate whether international parity conditions hold between Japan and the United States. b. Find the forecasted change in the Japanese yen to U.S. dollar (4=$1,00) exchange rate one year from now. a. Diagram and calculate whether international parity conditions hold between Japan and the United States. The forecast difference in rates of inflation is % (U.S. higher than Japan). (Round to one decimal place.)

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