The spot rate on the euro is $1.30 and the 180-day forward rate is $1.25. If the interest rate parity holds, the difference between the two rates means that (Indicate the best answer and explain why it is correct.) a. interest rates are higher in the U.S. than in Germany b. interest rates are lower in the U.S. than in Germany c. the euro is expected to increase in value relative to the dollar d. both a and e. both and