Assume the following: Current 1-year Japanese interest rate 3.0%;Current 1-year Canadian interest rate 5.0%; Current spot rate C$0.01 per yen.

Assume the following: Current 1-year Japanese interest rate 3.0%;Current 1-year Canadian interest rate 5.0%; Current spot rate C$0.01 per yen. Estimate the 1-year forward exchange rate using interest rate parity.

Question 22 options:

a) C$0.0102 per year

b) C$0.0098 per year

c) C$1.0194 per year

d) C$0.9810 per year