Refer to Table above. On May 5, 2012, the 3-month forward yen was selling at a:

a. 2.43% premium per annum against the dollar.

b. 9.72% premium per annum against the dollar.

c. 2.43% discount per annum against the dollar.

d. 9.72% discount per annum against the dollar.

And why?

Spot and Forward Exchange Rates on May 5, 2012. Currency per U.S. dollar month forward 3-month forward 1-year forward May 5 78.150 Japanese yen 80.100 78.750 77.250