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The annual interest rate in the U.S. is 5.5%, the direct spot quote for Polish Zlotys (z) is $0.3324/z and the 1-year forward quote for

The annual interest rate in the U.S. is 5.5%, the direct spot quote for Polish Zlotys (z) is $0.3324/z and the 1-year forward quote for the zloty is $0.3395/z. At what Polish interest rate would interest rate parity hold? a. 2.09% b. 3.19% c. 3.29% d. 7.75% e. 11.28%

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