We discussed the fact that forward rates usually deviate from spot rates. Forward rates can be greater than or less than spot. Suppose you have the following quotes:

Spot Yen-Dollar rate: JPY 118.27/USD

3 month forward Yen-Dollar rate: JPY 116.84/USD

If we use the JPY as the home currency, use the following formula to compute the 90 day percentage forward premium or discount on the JPY:

If JPY = (spot-forward)/forward x (360/number of days in forward period)

Based on the quotes, did the yen appreciate forward or depreciate forward? Explain.