Question: The current USD/JPY foreign currency spot rate is 105 . If the one -year interest rate in the U.S. is 1.0% and the corresponding one-year

The current USD/JPY foreign currency spot rate is 105 . If the one -year interest rate in the U.S. is 1.0% and the corresponding one-year interest rate in Japan is 5.0%. Under interest rate parity, the one-year USD/JPY forward rate has to be: a. 101.50 b. quad109.16 c. 111.22 d. 107.86

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