Suppose that a US Multinational firm can borrow in NY from JP Morgan at 3.5%. The CEO of the MNC is looking for several markets with lower interest rates to see if she can reduce their USD borrowing costs. The CEO's assistant gathers following data to help her to make the decision: Pariaba in Paris offers a loan in Euros at 4%; current spot rate of EUR is S=$1.1210/Euro; a 1 year forward rate available at F=1.1125 Nippon Bank, Tokyo offers a loan in JPY at 1%; current spot rate of JPY is S=JPY120/$; a 1 year forward rate available at F=JPY105/$ Banco Itau, Sao Paolo offers a loan in BRL at 8%; current spot rate of BRL is S=BRL3.90/$; a 1 year forward rate available at F=4.05/$ Assuming that all banks and forward contracts are equally safe; where should the US MNC borrow?