The three-month interest rate on yen is iv=1% per annum; the three-month interest rate on euros is ie=5.5% per annum. Which one of the following statements is correct? Select one: a. The euro is going to appreciate in the next year. b. According to the asset market approach, the current spot rate should be V1.293/ if the expected throe-month spot rate S,(W/C)=1.250. 6. Based on the Uncovered Interest Rate Parity, the euro is expected to appreciate by 4.5% against yen next three months d. To start a carry trade, a trader can short the euro against yen in three-month forward contracts. e. In a carry trade between euro and yen for three months, the profit will be 0.0315(for each yen borrowed) if the euro has appreciated 2% against yen in the three months