Suppose the following quotations are available: Spot rate Lit/US$ 1 34 5 Eurocurrency market Italian Lira 5. 5 0% U.S. Dollar 5. 1 0% I. What should be the one-year forward rate (Lit/US$) that will satisfy the Interest Rate Parity? II. Suppose the one-year forward rate is Lit/$ 1 35 5 today instead of the number you obtained in [I]. Given the numbers for the Italian interest, spot and forward rates as above, is the Italian Lira undervalued or overvalued in the forward market? (a). UNDERVALUED [ ] (b). OVERVALUED [ ]