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Business, 22.12.2020 03:40 samarth4315

Assume interest rate parity holds. The one-year risk-free rate in the U. S. is 5.62 percent and the one-year risk-free rate in Japan is 6.05 percent. The spot rate between the Japanese yen and the U. S. dollar is ¥118.53/$. What is the one-year forward exchange rate?A. ¥117.53/$.B. ¥114.33/$.C. ¥113.97/$.D. ¥114.69/$.E. ¥116.56/$.

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