Question: explain please! 10. Please use the data below, to answer the following question. 7% 5% USD 10,000,000 CAD 10,000,000 $0.800 $0.812 Interest rate in US

explain please!

10. Please use the data below, to answer the following question. 7% 5% USD 10,000,000 CAD 10,000,000 $0.800 $0.812 Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit in US: Line of credit in Swiss: The current spot rate for CAD (So): 1-year forward rate for CAD (F): Your covered interest arbitrage profit is: a. USD 53,125 b. CAD 115,628 c. CAD 41,872 d. USD 20,000 0 co sot (1470 10 700

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