If the spot exchange rate is 0.62 euro per Canadian dollar and the three-month forward rate is 0.60 euro per Canadian dollar, then the on the Canadian dollar in percentage (at an annual rate) is roughly Select one: O a. forward discount, 12.90% b. forward premium, 3.226% o O c. forward discount, 3.226% d. forward premium, 12.90% Suppose that the 12-month interest rates for Japan and Italy are 6% and 4% respectively. Given this information and the uncovered interest parity approximation, which of the following statement is correct? Select one: O a. The euro is expected to appreciate against the Japanese yen by 4% over the year. o b. The Japanese yen is expected to depreciate against the euro by 2% over the year. O c. The euro is expected to depreciate against the Japanese yen by 2% over the year. O d. The Japanese yen is expected to appreciate against the euro by 2% over the year