Suppose that the spot :$ is equal to 1.1795. The annual one-year interest rates on the Eurocurrency

Question:

Suppose that the spot €:$ is equal to 1.1795. The annual one-year interest rates on the market are 4 percent in euros and 5 percent in U.S. dollars. The annualized one-month interest rates are 3 percent in euros and 4 percent in U.S. dollars.
a. What is the one-year forward exchange rate?
b. What is the one-month forward exchange rate? Eurocurrency
Eurocurrency is currency deposited by national governments or corporations, outside of its home market. Commonly it is currency held in banks located outside of the country which issues the currency. Eurocurrency is when an institution uses money...