Parent Corporation is a US company that owns a subsidiary in Mexico Spot exchange rates: 0.1000 $/peso Risk-free interest rates: 5% in US 8% in Mexico Using the Interest Rate Parity Theorem, estimate the forward exchange rate in s/peso for t=1 Select one: a. .0893 $/peso b. .0919 $/peso C..0945 $/pesi d. .0877 $/peso The Talley Ho Corporation will be receiving payment in six months in the amount of 2 million euro from a German buyer. The current spot exchange rate is 1.95 dollars/euro. Government securities in Germany that mature in months are yielding a nominal rate of 9 percent, and comparable risk-free securities in the US are yielding 12 percent. What rate of exchange should be available on six-month forward contracts (in dollarsleuto)? Select one: a. 1.978 dollars/euro b. 1.014 dollars/euro O c. 1.922 dollars/euro O d. 2.004 dollars/euro