The spot rate for the Japanese yen currently is ¥120 per $1. The one-year forward rate is ¥119 per $1. A risk-free asset in Japan is currently earning 8 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free U.S. security?
8.83 percent
8.99 percent
7.10 percent
7.18 percent
8.91 percent