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Suppose the spot and three-month forward rates for the yen are 102.32 and 102.27, respectively. What is the approximate annual percent difference between the inflation

Suppose the spot and three-month forward rates for the yen are 102.32 and 102.27, respectively. What is the approximate annual percent difference between the inflation rate in Japan and in the U.S.?

a. -.20 percent

b. -1.21 percent

c. 1.67 percent

d. 2.28 percent

e. 1.93 percent

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