$1.$ Beth Miller does not believe that the IFE holds. Current one$-$year interest rates in Europe are $5$ percent, whereas one$-$year interest rates in the U$.$S$.$ are $3$ percent. Beth converts $$100,000$ to euros and invests them in Germany. One year later, she converts the euros back to dollars. The current spot rate of the euro is $$1\mathrm{.}10.$

a$.$ According to the IFE, what should the spot rate of the euro in one year be$?$

b$.$ If the spot rate of the euro in one year is $$1\mathrm{.}00,$ what is Beth$$s percentage return from her strategy?

c$.$ If the spot rate of the euro in one year is $$1\mathrm{.}08,$ what is Beth$$s percentage return from her strategy?

d$.$ What must the spot rate of the euro be in one year for Beth$$s strategy to be successful?