On August 8th the three-month risk-free rate of interest in the United States was 3.75 percent and

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On August 8th the three-month risk-free rate of interest in the United States was 3.75 percent and it was 3 percent in Japan. If the spot exchange rate were .009074, what would you expect the forward exchange rate to be?

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...
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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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