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The six month forward rate is 1.27 USD/EUR while today's rate is 1.22 USD/EUR. The...

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Finance

The six month forward rate is 1.27 USD/EUR while today's rate is 1.22 USD/EUR. The annual USA interest rate is 4.5% and Eurozone interest rate is 3.6%. Find the cost of the forward looking transaction. Solve and show me your solution. Choose one of the following: a. 4.1% b. 3.17% c. 2.05% and d. 8.2%.

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