Risk-free Canadian securities that mature in one year have a 7 percent nominal rate. Riskfree Japanese securities with a one-year maturity have a 4 percent nominal rate. Currently, in the one-year forward market, 1 Canadian dollar equals 70 Japanese yen (). Assuming that interest rate parity holds, what is the current spot exchange rate between the Canadian dollar and the Japanese yen?

a. 66.62 = $1 Canadian

b. 68.04 = $1 Canadian

c. 72.02 = $1 Canadian

d. 73.62 = $1 Canadian

e. 122.50 = $1 Canadian

Thank you!