Question: Answer questions 1 through 10 based on the following data: 3-month US (domestic) interest rate = 1.50% 3-month Japanese interest rate = 1.00% Current spot

Answer questions 1 through 10 based on the following data:

3-month US (domestic) interest rate = 1.50% 3-month Japanese interest rate = 1.00% Current spot exchange rate = $0.090 per yen Current forward exchange rate = $0.095 per yen

The 3-month yen-denominated gross return on Japanese yen deposits is ______ or so.

A) 1.01

B) 0.01

C) 1.0661

D) 0.0661

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