1) The spot rate between Canada and U.S. is C$1.2381 - $1, where as 1-year forward rate is C$1.2379 = $1. Risk-free rate in Canada is 2.8 percent. Risk-free rate in U.S. is 3.6 percent. How much profit can you earn on loan of $10,000 by using covered interest arbitrage?
a) -$81.42
b) -$78.34
c) -$53.60
d) $34.91
e) $65.07
2) How can process and systems of organizations be effectively used to support sharing and creating of knowledge? Write the definition and features of middle up-down management. Write a real-life example for this type of management.