Assume the Euro Is Selling in the Spot Market for $1.10.Simultaneously,in

Assume the euro is selling in the spot market for $1.10.Simultaneously,in the 3-month forward market the euro is selling for $1.12.Which one of the following statements correctly describes this situation?
I.The euro is selling at a premium relative to the dollar.
II.The dollar is selling at a premium relative to the euro.
III.The dollar is selling at a discount relative to the euro.
IV.The euro is selling at a discount relative to the dollar.

A) I and II only
B) I and III only
C) II and IV only
D) III and IV only
E) I and IV only