Suppose the Spot and Three-Month Forward Rates for the Yen

question 70

Multiple Choice

Suppose the spot and three-month forward rates for the yen are ¥102.32 and ¥102.27, respectively. What is the approximate annual percent difference between the inflation rate in Japan and in the U.S.?

• A) 1.93 percent
• B) −1.21 percent
• C) 1.67 percent
• D) −.20 percent
• E) 2.28 percent

---

Definitions:

Netflix

An American streaming service that offers a wide variety of TV shows, movies, anime, documentaries, and more on thousands of internet-connected devices.

Hulu

A subscription video on demand service that offers a wide range of television series, movies, and original content.

Infomercial

A television program that combines information and a sales pitch to promote a product or service extensively.

Educational Approach

A strategy focused on teaching or instructing an audience, often used in marketing to inform potential customers about a product's benefits or features.