$[$Related to Solved Problem $8\mathrm{.}3]$ Borrowing at a low interest rate in one currency to lend at a higher interest in another currency is sometimes called a "carry trade." In early $2020,$ an article on bloomberg. com observed that:

"Lured by both the stability of the peso and Mexico's high interest rates, investors keep piling in to the $[$carry$]$ trade."

How were investors making a profit in this carry trade?

A$.$ By borrowing at a low interest rate in one currency and lending at a higher interest rate in another currency using assets with similar default risks.

B$.$ By borrowing high risk assets at a low interest rate in one currency and lending to low risk borrowers at a higher interest rate in another currency.

C$.$ By borrowing low risk assets at a low interest rate in one currency and lending to high risk borrowers at a higher interest rate in another currency.