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The current spot rate is C$1.362 and the one-year forward rate is C$1.371. The nominal...

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Finance

The current spot rate is C$1.362 and the one-year forward rate is C$1.371. The nominal risk-free rate in Canada is 6 percent while it is 3.5 percent in the U.S. Using covered interest arbitrage you can earn an extra _____ profit over that which you would earn if you invested $1 in the U.S.image

73. The current spot rate is C$1.362 and the one-year forward rate is C$1.371. The nominal risk-free rate in Canada is 6 percent while it is 3.5 percent in the U.S. Using covered interest arbitrage you can earn an extra__profit over that which you would earn if you invested $1 in the U.S. A. $.0018 B. $.0045 C. $.0120 D. $.0180 E. $.0240

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