Please help!!

Question 4 You consider placing $100 in the US bank or the European bank. The US bank offers you the annual interest rate 1%, and the European bank offers you 3%. The one-year forward dollar-euro exchange rate is 1.05 dollars per euro, and the spot rate is 1.06 dollars per euro.

(a) What is the dollar return on US deposits?

(b) What is the dollar return on European deposits using the one-year forward rate?

(c) If you use the one-year forward rate, which bank will you choose to save money?

(d) Does CIP hold in this case?

(e) Assuming UIP holds, calculate the expected future spot rate and the expected rate of depreciation.

(f) Suppose the one-year forward dollar-euro exchange rate can be adjusted to clear the market. It can happen through arbitrage. What would be the equilibrium forward rate? Also, calculate the equilibrium forward premium.

(g) What is the relationship between the expected rate of depreciation and the equilibrium forward premium? At this equilibrium, do CIP and UIP hold?