The spot exchange rate (S) between US$ and AU$ is AU$1.29/US$1. The 1-year forward exchange rate (F) between US$ and AU$ is AU$1.25/US$1. The annual interest rate in Australia and US are 5% and 10% respectively. According to Interest Rate Parity Theorem, is US$ relatively undervalued or overvalued with respect to AU$ in the spot market, if the forward rate is correct? Select one: a. Undervalued b. Overvalued c. Fairly valued d. US$ is mispriced relative to AUS, but it is not sure about the direction of mispricing. e. Not able to infer whether US$ is mispriced relative to AU$