Suppose the spot and three-month forward rates for the yen are 129.18 and 131.49, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan?

Multiple Choice

• 1.79%

• 7.64%

• -6.84%

• 7.35%

• 7.06%

Suppose the spot and three-month forward rates for the yen are 129.18 and \131.49, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan? Multiple Choice 1.79% 7.64% -6.84% 7.35% 7.06%