While you were visiting London, you purchased a Jaguar for E35,000, payable in three months. You have enough cash at your bank in New York City, which pays 0.35 percent interest per month, compounding monthly, to pay for the car. Currently, the spot exchange rate is S1.45/E and the three-month forward exchange rate is $1.40/E. In London, the money market interest rate is 2.0% for a three-month investment. There are two altemative ways of paying for your Jaguar. 1. a. Keep the funds at your bank in the United States and buy 35,000 forwarod b. Buy a certain pound amount spot today and invest the amount in the U.K. for three months so that the maturity value becomes equal to 535,000. method. Which method would you prefer? Why? (Hint: US interest rate is 0.35% per month, compounding monthly, not annual rate, the 2% in London is a three-month rate, not annual rate or monthly rate)