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Derek Tosh and Yen-Dollar Parity Derek Tosh is attempting to determine whether US/Japanese financial conditions...

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Derek Tosh and Yen-Dollar Parity Derek Tosh is attempting to determine whether US/Japanese financial conditions are at parity. The current spot rate is a flat 289.00/$, while the 360-day forward rate is $84.90/$. Forecast inflation is 1.104% for Japan, and 5.903% for the US. The 360-day euro-yen deposit rate is 4.696%. and the 360-day euro-dollar deposit rate is 9.499% a. Calculate whether international parity conditions hold between Japan and the United States. b. Find the forecasted change in the Japanese yen U.S. dollar (W/S) exchange rate one year from now. Calculate whether international parity conditions hold between Japan and the United States The forecast difference in rates of inflation is % U.S. higher than Japan). (Round to one decimal place.)

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