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The spot rate for the Japanese yen currently is 108 per $1. The one-year forward rate is 107 per $1. A risk-free asset in Japan

The spot rate for the Japanese yen currently is 108 per $1. The one-year forward rate is 107 per $1. A risk-free asset in Japan is currently earning 8 percent. If Interest rate parity holds, what rate can you earn on a one-year risk-free U.S. security? Multiple Choice 7.08 percent 7.00 percent 9.01 percent 8.93 percent 9.09 percent

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