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Homework: Chapter Question 11, 81.75%, 17.17 E 16 Assignment Problem 16-11 of 21 points (similar to) O Points: 0 of Save (Interest rate parity) Suppose 90-day investments in Europe have an annualized return of 8 percent and a quarterly (90-day) return of 2 percent. In the United States, 90-day investments of similar risk have an annualized return of 11 percent and a quarterly return of 2.75 percent. In today's 90-day forward market, 1 euro equals $1.36. If interest rate parity holds, what is the spot exchange rate ($/E)? If interest rate parity holds, the spot exchange rate is S/E. (Round to four decimal places.)