Question 3 Use the following data to diagram and calculate whether international parity conditions hold between Japan and the United States. What is the forecasted change in the Japanese yen/US dollar (/$) exchange rate one year hence? Briefly explain whether international parity conditions holds. Assumptions Forecast annual rate of inflation for Japan Forecast annual rate of inflation for United States One-year interest rate for Japan One-year interest rate for United States Spot exchange rate (/$) One-year forward exchange rate (\/$) Value 1.000% 5.000% 4.000% 8.000% 104.00 100.00