Interest rate parity questions

On August 15, 2007, the one-year interest rate for the U.S. dollar (US$ LIBOR) was 5.20875% and the equivalent yen interest rate (yen LIBOR) was 1.06500%. Based on interest rate parity, which currency should have a forward premium? a. The yen. b. The dollar. On December 31, 2.004, the one-year interest rate for the U.S. dollar (US$ LIBOR) was 3.1000% and the equivalent yen interest rate (yen LIBOR) was 0.0925% (Source: Financial Times, http: / / www.marketprices.ft.com/ markets / currencies / money). Based on interest rate a. the dollar should be at a forward premium of about 3% against the yen. b. the yen should be at a forward premium of about 0.0925% against the dollar. c the dollar should be at a forward premium of about 3.1000% against the yen. d the yen should be at a forward premium of about 3% against the dollar