Suppose the interest rate in Japan is 1% p. a. and the interest rate in the US is 2.5% p. a. Assume borrowing and invest

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Suppose the interest rate in Japan is 1% p. a. and the interest
rate in the US is 2.5% p. a.
Assume borrowing and investing occur at these rates.
The spot rate is ¥100 per dollar. Assume that speculator buys
¥10,000 today and invests the amount in a yen denominated bond.
One year later the spot rate turns out to be ¥101. What
is the rate of return earned by the speculator if the conversion
back to dollars happens at the spot rate?
1.0%
1.5%
2%
2.5%