Question: D Question 32 Given the information: Interest rate in US (Rh): 4% Interest rate in Canada (Rh): 6% Line of credit in US: USD 10,000,000

D Question 32 Given the information: Interest rate in US (Rh): 4% Interest rate in Canada (Rh): 6% Line of credit in US: USD 10,000,000 Line of credit in in Canada: CAD 12,500,000 The spot rate of CAD now (SRO): $0.80 If your forecast tells you that the spot rate of CAD one year later (SR1) will be $0.775, then your recommended investment strategy should earn a net profit of: O CAD 200,000 USD 250,000 CAD 169,355

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