Step by Step solution with detailed explanation would be appreciated! :)

1) Annual interest rate on 90-day U.S. asset is 4%, annual interest rate on 90-day Korean asset is 6%, and the spot rate is $1=1200.

a) If you expect the spot rate to be $1=1075 after three months, where do you invest?

b) If you also expect the U.S. interest rate to increase to 5% in 90 days, where do you invest?