Question 7 (3.3 points) James Quick does not believe that the international Fisher effect (IFE) holds. Current one-year interest rates in Europe are 12.5 percent, while one-year interest rates in the U.S. are 8 percent. James converts $100,000 to euros and invests them in France. One year later, he converts the euros back to dollars. The current spot rate of the euro is $1.150 If the spot rate of the euro in one year is $1.102, what is James' percentage return from his strategy? 117.40% 7.80% 17.40% 0 107.80% Question 8 (3.3 points) Continued from above, what must the spot rate of the euro be in one year for James' strategy to be successful? As long as the spot rate is below $1.104 per euro, James' strategy can be successful. As long as the spot rate is above $1.104 per euro, James' strategy can be successful. As long as the spot rate is above $1.102 per euro, James' strategy can be successful. As long as the spot rate is below $1.104 per euro, James' strategy can be successful