Question: When performing Currency Exchange Arbitrage, how do you know the home/foreign country interest rate for F 0 = S 0 e (r home -r foreign

When performing Currency Exchange Arbitrage, how do you know the home/foreign country interest rate for F₀= S₀ e^{(r_home-r_foreign)T}?

For example in this question (please show working and explain how to determine which is foreign/home):

The exchange rate in the spot market is 0.5 Chinese RMB for 1 Japanese JPY. The interest rates in Japan are 8% p.a, and 2% p.a in China, continuously compounded. The 6 month futures exchange rate is RMB 0.55. Show the arbitrage transaction.

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