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If the spot rate on one Turkish lira is $0.26884 and the 1-year Turkish interest rate is 6.5 percent, and the 1-year U.S. interest rate

If the spot rate on one Turkish lira is $0.26884 and the 1-year Turkish interest rate is 6.5 percent, and the 1-year U.S. interest rate is 4.8 percent, what is the lira's forward discount or premium?Assume interest rate parity exists.

1.13% premium

1.60% premium

1.60% discount

1.13% discount

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