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

please show work

Please use the data below, to answer the following question. Interest rate in US (Rh): 5% Interest rate in Canada (Rh): 7% Line of credit in US: USD 10,000,000 Line of credit in Swiss: CAD 10,000,000 The current spot rate for CAD (S.): $0.800 1-year forward rate for CAD (F): $0.781 Your covered interest arbitrage profit is: Correct Answer CAD 55,442 USD 200,000

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