Assume that a U$.$S$.$ firm can invest funds for one year in the United States at $12$ percent or invest funds in Mexico at $14$ percent. The spot rate of the peso is $$\mathrm{.}10$ while the one$-$year forward rate of the peso is $$\mathrm{.}10.$ If U$.$S$.$ firms attempt to use covered interest arbitrage, what forces should occur?

a$.$ Spot rate of peso increases; forward rate of peso decreases.

b$.$ Spot rate of peso increases; forward rate of peso increases.

c$.$ Spot rate of peso decreases; forward rate of peso decreases.

d$.$ Spot rate of peso decreases; forward rate of peso increases