You observe the following current rates: Spot exchange rate: $0.01/yen. Annual interest rate on 90-day U.S. dollar-denominated

Question:

You observe the following current rates: Spot $0.01/yen.
Annual interest rate on 90-day U.S. dollar-denominated bonds: 4%. Annual interest rate on 90-day yen-denominated bonds: 4%.
a. If uncovered interest parity holds, what spot do investors expect to exist in 90 days?
b. A close U.S. presidential election has just been decided. The candidate whom international investors view as the stronger and more pro business person won. Because of this, investors expect the to be $0.0095/yen in 90 days. What will happen in the foreign exchange market?
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...