What is the forward premium on euro, International Economics

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What is the forward premium on euro

Problem

Suppose the one-year forward $/€ exchange rate is $1.26 per euro and the spot exchange rate is $1.2 per euro. What is the forward premium on euro (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 political risk)?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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