On February the 10th, 2016, the company A, based in Europe, wants to maximize its profit through a set of investments in the United States or in France. This company wants to know where it can make the best investments considering the forward rates and the interest rates.

You are given the following data:

- Currently, the spot rate is 1.25$/euro

- The annual interest rate is 6% in France and 4% in the United States

- 1 year forward rate is 1.23$/euro

In which country should company A invest? What transaction cost rate would cancel any profit?

Select one: a. France, unless there is a transactional cost in the US above 0.3% and no transaction fees in france b. United states, unless there is a transactional cost in the US above 0.3% and no transaction fees in france c. France, unless there is a transactional cost in france above 0.3% to invest and no transaction fees in the US. d. United states, unless there is a transactional cost in france above 0.3% and no transaction fees in the US