International financial management book

QUESTION 8 A currency dealer has good credit and can borrow either $1,000 or 800 for one year. The one-year interest rate in the U.S. is i$ = 3% and in the euro zone the one-year interest rate is i = 6%. The one- year forward exchange rate is $1.20 = 1.00; what must the spot rate, 1Euro = $ , be to eliminate arbitrage opportunities, round to 4 decimal places? S