The current spot exchange rate is 109.43/$. A particular commodity sells for $5,000 in the United States

Question:

The current spot is ¥109.43/$. A particular commodity sells for $5,000 in the United States and ¥600,000 in Japan.
a. Does the law of one price hold? If not, explain how to profit through arbitrage.
b. If it costs ¥60,000 to transport the commodity from the United States to Japan, is there still an arbitrage opportunity? At what (in yen per dollar) would buying the commodity in the United States and shipping it to sell in Japan become profitable?
c. Given shipping costs of ¥60,000, at what would it be profitable to buy the commodity in Japan and ship it to the United States to sell? Comment on the general lesson from parts (a)–(c).
d. Taking the commodity prices in the United States and Japan as given, at what (in terms of yen per dollar) would the law of one price hold ignoring shipping costs?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...