Use the Following Information to Answer This Question $\bullet$ Current 1-Year Japanese Interest Rate 3

Multiple Choice

Use the following information to answer this question:
$\bullet$ Current 1-year Japanese interest rate 3.0%
$\bullet$ Current 1-year Canadian interest rate 5.0%
$\bullet$ Current spot rate C$0.01 per yen.
Estimate the 1-year forward exchange rate using interest rate parity.

A) C$0.0102 per yen
B) C$0.0098 per yen
C) C$1.0194 per yen
D) C$0.9810 per yen