Roll Yield

Hi,

I’m having trouble with example 5 on page 257 in CFAI book 5. For the first problem, I picked C because the domestic rate goes on the top of the equation for IRP. The company is korea based, so I would guess that KRW is the base currency and JPY is foreigh currency. I got that wrong.

Can anybody tell me what’s wrong in my thinking here?

Thanks for your help.

Anybody?