Question: option c is not the answer. The spot exchange rate is $0.75 US CAD. The U.S. interest rate is 2%, the interest rate in Canada

option c is not the answer. option c is not the answer. The spot exchange rate is $0.75

The spot exchange rate is $0.75 US CAD. The U.S. interest rate is 2%, the interest rate in Canada is 3%. A futures contract on 1,000,000 CAD, with one year to delivery, settles at 0.77 US CAD. Calculate the amount of U.S. dollars that you need for the arbitrage strategy Borrow $978,874 U.S Invest $978,874 US Invest $728,155 U.S Borrow $728,155 U.S

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