The spot exchange rate is $1.37 per euro, the one-year forward exchange rate is $1.38 per euro, and the European risk-free interest rate is 3.8% per year. If interest rate parity holds, what is the annual U.S. risk-free interest rate? 1) 3.29% 2) 3.05% 3) 2.88% 4) 4.56% 5) 4.38%