Question: Explain please 9. Please use the data below, to answer the following question Interest rate in US (Rh): 7% Interest rate in Canada (Rh): 5%

Explain please

9. Please use the data below, to answer the following question Interest rate in US (Rh): 7% Interest rate in Canada (Rh): 5% The current spot rate for CAD (S.): $0.800 1-year forward rate for CAD (F): S0.812 If you wanted to set up a covered interest rate arbitrageyou should borrow in a. US Dollars: Canadian Dollars Canadian Dollars: US Dollars and invest in

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