Question: Question 2 (4 points) Suppose the exchange rate for the Japanese yen, So, is currently 120 = $1. If the interest rate in the United

Question 2 (4 points) Suppose the exchange rate for the Japanese yen, So, is currently 120 = $1. If the interest rate in the United States is RUS = 10% and the interest rate in Japan is RJ = 7%, then what must the forward rate be to prevent covered interest arbitrage? 116.40 113.28 119.13 107.22 Onone of the above

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