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Dereck Tosh is attempting to determine whether US/ Japanese financial conditions are at parity.The current spot rate is a flat A??Y89.00/$ , while a 360 day forward rate is A??Y84.90/$. Forecast inflation is 1.100% for Japan and 5.900% for USA. The 360 day euro yen deposit rate is 4.700%. And the 360 day euro dollar deposit rate is 9.500%A. Calculate whether international parity conditions hold between Japan and the USAB. find the forecast change in the Japanese yen/ US dollar (A??Y/$) exchange rate one year from now.
