The spot exchange rate is $1.10 per . One year ahead forward rate is $1.08 per . If the interest rate in dollars is 4% and the interest rate in euros is 7%. If an investor borrows $100 and invests in a euro denominated bond while locking the one year ahead conversion rate with a forward contract. What is her profit from this strategy?

a. $1.05

b. $1.85

c. $0.82

d. $2.28