Dorok Tosh and Yen-Dollar Parity, Derek Toshis attempting to determine whether US/Japanese financial conditions are...

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Dorok Tosh and Yen-Dollar Parity, Derek Toshis attempting to determine whether US/Japanese financial conditions are at parity The current spot rate is a flat 799.00/s, while the 360 day forward rate is 484.90/6. Forecast inflation is 1.105% for Japan, and 5.899% for the US. The 360 day curo-yon deposit rato is 4.699%, and the 360-day ouro-dollar deposit rate is 9.497% a. Calculate whether international parity conditions hold between Japan and the United States. b. Find the forecasted change in the Japanese yervU.S. dollar (W/$) exchange rate one year from now a. 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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