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Suppose that the one-year interest rate is 3.05% in Italy, the spot exchange rate is $1.5321/1.00, and the one-year forwand exchange rate is $1.5552/e1.00. Based

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Suppose that the one-year interest rate is 3.05% in Italy, the spot exchange rate is $1.5321/1.00, and the one-year forwand exchange rate is $1.5552/e1.00. Based on interest rate parity, what must the one-year interest rate be in the United States? 1.485% 1.498% 1.808% 1.519% 4.604% 1.497%

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