An investor has two options: A US and a German security. The investor wants zero default risk and zero foreign exchange risk. The interest rate on the one-year US security is 5%; it is 10% on the German security. The current spot rate is $1.2=1; the one-year forward rate is $1.4=1. a. In which market is the investor going to move funds (which option is favored)? b. Show graphically (what you found in a). The price of a slice of pizza in the US is $3. It is 20 slabs in Slabovia. The exchange rate between the dollar and the slab is $1=10 slabs. Is the slab overvalued versus the dollar? Undervalued? By how much? An investor has two options: A US and a German security. The investor wants zero default risk and zero foreign exchange risk. The interest rate on the one-year US security is 5%; it is 10% on the German security. The current spot rate is $1.2=1; the one-year forward rate is $1.4=1. a. In which market is the investor going to move funds (which option is favored)? b. Show graphically (what you found in a). The price of a slice of pizza in the US is $3. It is 20 slabs in Slabovia. The exchange rate between the dollar and the slab is $1=10 slabs. Is the slab overvalued versus the dollar? Undervalued? By how much