Suppose you observe the spot euro at $1.50/, the U. S. risk-free interest rate of 3.25% (continuously compounded), and the six month futures price of $1.50/. Identify the correct implied European risk-free interst rate (select the closest answer).

a. 3.25%

b. 1.0%

c. 0.0%

d. 1.0%

e. 3.25%