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9. (3 points) Suppose you observe the following dollar-euro spot exchange rate, and the U.S. and euro-zone annual interest rates. From the U.S. perspective, what

9. (3 points) Suppose you observe the following dollar-euro spot exchange rate, and the U.S. and euro-zone annual interest rates. From the U.S. perspective, what must be the no-arbitrage one-year forward rate of dollars per euro according to Interest Rate Parity (IRP)? Spot exchange rate S($/) $1.05/ 360-day forward rate F360($/) ? Annual U.S. interest rate is II 5.0% Annual euro-zone interest rate ie 3.0% a. $0.9709/. b. $1.03/. c. $1.0704/. d. $1.1025/

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