Current $/ spot exchange rate is $1.22/. It is expected that German bunds will yield a 5% return next year. If the return on German bunds from a perspective of an Australian investors point of view is 8% next year, by how much will Euro appreciate or depreciate against AUD next year? Please select the most suitable option

	a.	Depreciate by 2.77%
	b.	Appreciate by 2.77%
	c.	Appreciate by 2.86%
	d.	Depreciate by 2.86%