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

please explain

Please use the data below, to answer the following question. Interest rate in US (Rh): 5% h Interest rate in Canada (Rh): 7% The current spot rate for CAD (So): $0.800 1-year forward rate for CAD (F): $0.781 The covered interest rate arbitrage trades that this will generate will cause: swer Downward pressure on the CAD's spot rate. vered Downward pressure on the CAD's forward rate

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