Assignment 2: IFE TheoryJack is considering an investment that involves buying E

Assignment 2: IFE TheoryJack is considering an investment that involves buying Euros today and then converting them back to dollars one year from today. He is going to base his investment on the international Fisher effect and has asked for your help in evaluating the opportunity.Currently the one year interest rate is 6% in Europe. Interest rates in the U.S. for one year securities are at 4% and the current spot rate for Euros is 1.15. Jacks strategy is to convert $110000 USD into Euros today and one year from now convert them back to dollars. Will Jacks strategy work?Required: