Question: Question 7 The 6-month interest rate differential between and is C$ 3% (.e., if-CS - 3%) while the 6-month C$ forward premium against is 5%.

Question 7 The 6-month interest rate differential between and is C$ 3% (.e., if-CS - 3%) while the 6-month C$ forward premium against is 5%. Which currency should you invest in when doing a covered interest arbitrage trading between the two currencies? Either currency cs Both currencies

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