The current spot rate is c1379 and the one-year forward


The current spot rate is C$1.379 and the one-year forward rate is C$1.319. The nominal risk-free rate in Canada is 4 percent while it is 8 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.

$0.0780

$0.0473

$0.0073

$0.0853

$0.0000

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Financial Management: The current spot rate is c1379 and the one-year forward
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