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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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