Question: Given a point X (7,4) on the IRP graph (X-axis: Forward Premium (discount). Y-axis. i-ip, that is the U.S. interest rate is 4% higher than

Given a point X (7,4) on the IRP graph (X-axis: Forward

Given a point X (7,4) on the IRP graph (X-axis: Forward Premium (discount). Y-axis. i-ip, that is the U.S. interest rate is 4% higher than the Swiss rate, and the forward rate of the Swiss franc has a 7% premium what is the net profit from conducting covered interested arbitrage from US investor's +2% 8% -2% 3%

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