Beth Miller does not believe that the International Fisher Effect (IFE) holds. Current 1-year interest rates in Europe are 5 percent, while 1-year interest rates in the United States are 3 percent. Beth converts $100,000 to euros and invests them in Germany. One year later, she converts the euros back to dollars. The current spot rate of the euro is $1.10.

A) Beth would have a gain.
B) Beth would have a loss.
C) Beth's investment would break even.
D) Insufficient information to determine.