Is this exercice correct?

$4.$ Covered versus uncovered interest arbitrage

On June $5,$ Janet, an American investor, decided to buy six$-$month Treasury bills. She found that the per$-$annum interest rate on six$-$month Treasury bills is $7\mathrm{.}00\%$ in New York and $11\mathrm{.}00\%$ in Frankfurt, Germany. Based on this information and assuming that tax costs and other transaction costs are negligible in the two countries, it is in Janet's best interest to purchase six$-$month Treasury bills in $,$ because it allows her to earn $0\mathrm{.}33\%q,$ more for the six months.

On June $5,$ the spot rate for the euro was $$0\mathrm{.}820,$ and the selling price of the six$-$month forward euro was $$0\mathrm{.}822.$ At that time, Janet chose to ignore this difference in exchange rates. In six months, however, the spot rate for the euro fell to $$0\mathrm{.}818$ per euro.

When Janet converted the investment proceeds back into U$.$S$.$ dollars, her actual return on investment was $q,2\mathrm{.}24\%.$

As a result of this transaction, Janet realizes that there is great uncertainty about how many dollars she will receive when the Treasury bills mature. So$,$ she decides to adjust her investment strategy to eliminate this uncertainty.

What should Janet's strategy be the next time she considers investing in Treasury bills?

Sell enough foreign currency on the forward market to match the anticipated proceeds from the investment.

Avoid investment in foreign institutions.

Exchange large amounts of foreign currency for domestic currency.

Had Janet used the covered interest arbitrage strategy on June $5,$ her net return on investment $($relative to purchasing the U$.$S$.$ Treasury bills$)$ in German six$-$month Treasury bills would be $q,1\mathrm{.}76\%q,($Note: Assume that the cost of obtaining the cover is zero.$)$

Continue without saving