Suppose You Observe a Spot Exchange Rate

Suppose You Observe a Spot Exchange Rate for $3 Only
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Suppose you observe a spot exchange rate of $1.0500/€. If interest rates are 5% APR in the U.S.and 3% APR in the euro zone, what is the no-arbitrage 1-year forward rate?A)€1.0704/$B)$1.0300/€C)$1.0704/€D)€1.0300/$

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Suppose you observe a spot exchange rate of $1.50/€. If interest rates are 5% APR in the U.S. and 3% APR in the euro zone, what is the no-arbitrage 1-year forward rate?

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