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Suppose that the one-year interest rate is 3.8% in the United States; the spot exchange rate is $1.18 / , and the one-year forward exchange

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Suppose that the one-year interest rate is 3.8% in the United States; the spot exchange rate is $1.18 / , and the one-year forward exchange rate is $1.15 / . What must be the one- year rate for Eurozone for the IRP to be preserved, and for there to be no arbitrage opportunities? 7.34% 6.51% 8.35% 9.12%

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