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. 16. You are asked to answer question (23) again. But this time, you must use the approximation formula for the calculation. Then what is the rate of return based on dollars: A) 1.950% B) 2.000% C) 2.125% D) 4.000% 17. Suppose that you engage in a uncovered interest arbitrage by investing in euro-denominated assets. What is your expected rate of return based on dollars using the approximation formula? A) 0.333% B) 0.512% C) 0.667% D) 1.500%