The Next Questions Refer to the Following

The next questions refer to the following.
The one-year interest rate in the U.S. is 3%, and the one-year rate in Japan is 5%. Investors expect the spot market exchange rate one year from now to be ¥100 = $1.
-An American investor requires a 2% risk premium on Japanese investments. Under these conditions,the American investor will acquire Japanese assets if,on the current spot market,$1 can be exchanged for

A) more than ¥100
B) between ¥98.10 and ¥100
C) ¥98.10
D) between ¥96.26 and ¥100
E) less than ¥96.26