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The one-year Treasure rate in the U.S. is 1.51% and the one-year Treasury rate in Italy is 2.83%. The spot exchange rate of U.S. dollar

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The one-year Treasure rate in the U.S. is 1.51% and the one-year Treasury rate in Italy is 2.83%. The spot exchange rate of U.S. dollar (USD) to euro (EUR) is USD 1= EUR 0.8382. If the interest rate parity condition holds, the one-year forward exchange rate would be Select one: a) 0.8501 b) 0.8284 c) 0.8529 d) 0.8257

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