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please hurry up Assume that an Australian company can invest funds for...

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Finance

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Assume that an Australian company can invest funds for one year in the Australia at 10% (domestic) or invest funds in Germany at 8% (foreign). The spot rate of the euro is $1.45/ while the one-year forward rate of the euro is $1.45/. If the German company attempt to use covered interest arbitrage, what market adjustment should occur? Select one: a spot rate of euro decreases; forward rate of euro increases. b. spot rate of euro decreases; forward rate of euro decreases. Oc. spot rate of euro increases; forward rate of euro decreases. Od spot rate of euro increases; forward rate of euro increases

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