Question: QUESTION 10 The spot rate between Canada and the U.S. is Can$1.2437/$, while the one-year forward rate is Can$1.2436/$. The risk-free rate in Canada is

QUESTION 10 The spot rate between Canada and the U.S. is

QUESTION 10 The spot rate between Canada and the U.S. is Can$1.2437/$, while the one-year forward rate is Can$1.2436/$. The risk-free rate in Canada is 4.57 percent and risk-free rate in the United States is 2.73 percent. How much in profit can you earn on $10,500 utilizing covered interest arbitrage? O $169.82 O $194.08 O $155.27 O $216.36 O $192.32

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