Imagine a multinational corporation, Omega Industries, considering borrowing in the United States or the Eurozone to finance a project. Omega plans to borrow $1,000,000$ for one year. The current spot exchangerate is $1$ Euro $($EUR$)=1\mathrm{.}10$ US dollars $($USD$).$ The one$-$year interest rate in the United States is $3\%,$ and in the Eurozone, it is $2\%.$

$($a$)$

Calculate and interpret the expected forward exchange rate using the interest rate parity formula.

$($b$)$

Determine and interpret the cost of borrowing $1,000,000$ in the Eurozone using the forward contract and compare it to the cost of borrowing in the United States.