A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one-year interest rate in the U.S. is i($) -8% and in the euro zone the one-year interest rate is i() -4%. The spot exchange rate is $1.25/ and the one-year forward exchange rate is $1.40 / . Using interest rate parity (IRP), find out whether investing in the U.S. or in the euro zone is better. Hint: If IRP holds> 1 + is - [(F s/e)/(F s/e)] x (1 + i) O US Euro zone