Suppose the one-year forward $/ exchange rate is $1.26 per euro and the spot exchange rate is

Question:

Suppose the one-year forward $/€ is $1.26 per euro and the spot is $1.2 per euro. What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...