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The current exchange rate is 0.0124 U.S. dollars per Japanese yen, and the one-year forward exchange rate is 0.0135 U.S. dollars per Japanese yen. The
The current exchange rate is 0.0124 U.S. dollars per Japanese yen, and the one-year forward exchange rate is 0.0135 U.S. dollars per Japanese yen. The one-year Japanese yen interest rate is 3%CC. What should the one-year U.S. dollar interest rate be?
A. 3.50%CC
B. 5.50%CC
C. 7.30%CC
D. 7.50%CC
E. 11.50%CC
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