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Choose from the following Assume the following information: = U.S. investors have $1,000,000...

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Finance

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Assume the following information: = U.S. investors have $1,000,000 to invest 1-year deposit rate offered on U.S. dollars 1-year deposit rate offered on Singapore dollars 1-year forward rate of Singapore dollars Spot rate of Singapore dollar = 12% 10% $.412 $.400 = Given this information: A) interest rate parity exists and covered interest arbitrage by U.S. investors results in the same yield as investing domestically. B) interest rate parity doesn't exist and covered interest arbitrage by U.S. investors results in a yield below what is possible domestically C) interest rate parity exists and covered interest arbitrage by U.S. investors results in a yield above what is possible domestically. D) interest rate parity doesn't exist and covered interest arbitrage by U.S. investors results in a yield above what is possible domestically

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