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Imagine a multinational corporation, Omega Industries, considering borrowing in the United States or the Eurozone to finance a project. Omega plans to borrow E1,000,000 for one year. The current spot exchange rate is 1 Euro (EUR) = 1.10 US dollars (USD). The one-year interest rate in the United States is 3%, and in the Eurozone, it is 2%. 1. Calculate and interpret the expected forward exchange rate using the interest rate parity formula. 2. Determine and interpret the cost of borrowing E1,000,000 in the Eurozone using the forward contract and compare it to the cost of borrowing in the United States