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You have $1,000 to invest. You can borrow or lend money on dollar-denominated accounts in the United States at an interest rate (effective annual rate)

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You have $1,000 to invest. You can borrow or lend money on dollar-denominated accounts in the United States at an interest rate (effective annual rate) of 3.75%, while the interest rate in Japan is 2%. The exchange rate today is 98 yen per dollar. If you believe that there are no arbitrage opportunities from moving money from one country to another, what must you believe will be the exchange rate one year from today? 94.62 yen per dollar 112.71 yen per dollar 115.29 yen per dollar 96.35 yem per dollar

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