Which of the following best describes the risks associated with the yen carry trade?

A. The weakening dollar may offset gains from borrowing at a lower interest rate in Japan and investing at higher rates in the US.

B. The forward premium on the yen may be smaller than expected, decreasing the gains from converting to dollars and investing in the US.

C. None of the other answers are correct.

D. The weakening yen may offset gains from borrowing at a lower interest rate in Japan and investing at higher rates in the US.

E. Interest rates in Japan may be higher than expected.