Assume That You Forecast the Value of the Euro as Follows

Assume that you forecast the value of the euro as follows for the next year:​


If the interest rate on the euro is 12 percent, the expected effective yield from a euro-denominated deposit is:

A) 15.36 percent.
B) 15.70 percent.
C) 12.00 percent.
D) 14.35 percent.
E) none of the above