The 1-year yen interest rate is 5% p.a., and the 1-year euro interest rate is 10% p.a. If the Covered Interest Rate Parity holds exactly, the annualised forward ________ on the euro is ________.

Select one:

A.

premium; 4.5%

B.

discount; 4.5%

C.

premium; 4.8%

D.

discount; 5%

E.

premium; 5%