Suppose the current spot rate in New York is .0119 dollars per yen. Inflation for the coming year in the United States is expected to be 3%, while inflation for the coming year is Japan is expected to be only 1%. Using the purchasing power parity theory, the expected spot rate at the end of the year should be:

A. .0138373 dollars per yen.

B. .0121356 dollars per yen.

C. .0110147 dollars per yen.

D. .0108159 dollars per yen.