An American investor has 2,000 dollars. They come to you to advise them in two different investment options: choice a. They place the money in a bank in Atlanta. choice b. They can place the money in a bank in London.

There's a 1- yr interest rate on bank deposits and it is 4% in Atlanta and 2% in the London. The 1-yr forward dollar/euro exchange rate (F$/e) is 0.9 dollar per euro and the spot rate (E$/e) is 0.85 dollar per euro. Using the exact equations for UIP and CIP, What is the return on choice a (dollar deposit) for the investor and what is the return on choice b (euro deposit) in which investor uses a Forward Contract?