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Suppose the spot rate on June 1,2001 was 1.20=$1.00, and exactly 180 days later the spot rate changed to 1.00=$1.00. The interest rate in the

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Suppose the spot rate on June 1,2001 was 1.20=$1.00, and exactly 180 days later the spot rate changed to 1.00=$1.00. The interest rate in the eurozone was 4%. What is the effective dollar interest rate from the eurozone deposit? Hint: Annualize the rate. 44.8% 22.4% 22.4% 24.8%

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