Q32 Assume the current spot rate is C$1.1415 and the one-year forward rate is C$1.1252....
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Q32 Assume the current spot rate is C$1.1415 and the one-year forward rate is C$1.1252. The nominal risk-free rate in Canada is 7.8 percent while it is 7.2 percent in the U.S. Using covered interest arbitrage, you can earn a profit of ___ for every $1 invested over the next year.
-$.0040
$.0163
$.0216
-$.0088
-$.0840
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