1, Assume that the U.S. interest rate is 10 percent, while the British interest rate is 15 percent. If interest rate parity exists, then:

a. U.S. investors who invest in the United Kingdom will achieve the same return as U.S. investors who invest in the United States.

b. British investors will earn a higher rate of return when using covered interest arbitrage than what they would earn in the United States.

c. British investors will earn 10 percent whether they use covered interest arbitrage.

d. British investors will earn 15 percent when they engage in covered interest arbitrage.

2, Which of the following is the most likely strategy for a U.S. firm that will be purchasing Swiss francs in the near future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs)?

a.Obtain a forward contract to sell francs forward.

b. Purchase a call option on francs.

c. Buy franc at the spot market.

d. Sell futures contract on francs.

Just need the option answer. NO need for an explanation

(more appreciate for a faster answer )