(Choose 1 answer)
Suppose that the one-year interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and the one-year forward exchange rate is $1.16/€. What must the spot exchange rate be?
A. $1.1768/€
B. $1.1434/€
C. $1.12/€
D. None of the above
Exit 34
