Answer questions 11 through 17 based on the following data: 12-month interest rate on dollar-denominated assets (like US bank deposits) is 1.2% 12-month interest rate on euro-denominated assets (EU's bank deposits) is 4.0% The current spot exchange rate is one euro for $1.50. The current 12-month forward exchange rate is one euro for $1.47. You expect the spot exchange rate might fall to one euro for $1.45 in a year, but you are not so sure. 11. Regarding the forward premium or discount on the foreign exchange market, which of the following is correct? A) There is a forward premium of 2%. B) There is a forward discount of 2%. C) There is forward premium of about 1.36%. D) There is forward discount of about 1.36%. 12. If you are risk averse, then which of the following is correct in your case? A) You engage in a covered interest arbitrage by investing in dollar-denominated assets. B) You engage in a covered interest arbitrage by investing in euro-denominated assets. C) You engage in an uncovered interest arbitrage by investing in dollar-denominated assets. D) You engage in an uncovered interest arbitrage by investing in euro-denominated assets. 13. If you are risk neutral, then which of the following is correct in your case? A) You engage in a covered interest arbitrage by investing in dollar-denominated assets. B) You engage in a covered interest arbitrage by investing in euro-denominated assets. C) You engage in an uncovered interest arbitrage by investing in dollar-denominated assets. D) You engage in an uncovered interest arbitrage by investing in euro-denominated assets