How high does the lending rate in the euro zone have to be before an arbitrageur would NOT consider borrowing dollars,trading for euro at the spot,investing in the euro zone and hedging with a short position in the forward contract?

Name: How high does the lending rate in the euro zone have to be before an arbitrageur would NOT consider borrowing dollars,trading for euro at the spot,investing in the euro zone and hedging with a short position in the forward contract?
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The Answer is B

How High Does the Lending Rate in the Euro Zone