1.Suppose that on January 1, 2015, the spot exchange rate between the Canadian dollar and the US dollar was US$1= CA$1.19. On December 31, 2015, the spot exchange rate was US$1= CA$1.39. The annual Canadian interest rate is 1% and the annual US interest rate is 3% in 2016. What should the one-year forward exchange rate (CA$/US$) be on December 31, 2015 if the covered interest rate parity holds?

A) 1.36

B) 1.17

C) 1.42

D) 1.21