QUESTION 16 Denote the spot euro rate (/$) by S, the forward euro rate (/$) by F, and the forward premium by p. The dollar interest rate is denoted by i$, which is equivalent of home interest rate, and the euro interest rate is denoted by i, which is equivalent of foreign interest rate. Which of the following is not a formal statement of IRP for the dollar/euro exchange rate? = + = (1 + i$)/(1 + 1) = F/S O (1 + i$)/(1 + i) 1 + p p = (1 + i$)/(1 + i) O (1 + i$)/(1 + i) = 1 - p 1