Assume the Spot Rate Between Japan and the U

Assume the spot rate between Japan and the U.S.is ¥119.37 = $1, while the one-year forward rate is ¥119.07 = $1.A one-year risk-free security in the U.S.is yielding 4.2 percent.What is the rate of return on a one-year risk-free security in Japan assuming that interest rate parity exists?

A) 3.82 percent
B) 3.94 percent
C) 3.44 percent
D) 3.49 percent
E) 4.46 percent