The Current Spot Rate Is C$1

question 89

Multiple Choice

The current spot rate is C$1.400 and the one-year forward rate is C$1.364.The nominal risk-free rate in Canada is 2% while it is 4% in the U.S.Using covered interest arbitrage you can earn an extra _____ profit over that which you would earn if you invested $1 in the U.S.

• A)$.0000
• B)$.0033
• C)$.0069
• D)$.0833
• E)$.0840

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Definitions:

Antisocial Behaviors

Actions that harm or lack consideration for the well-being of others, often violating social norms.

Depression

A common mental health disorder marked by persistent sadness, loss of interest in activities, and a range of emotional and physical symptoms.

Oppositional Defiant Disorder

A behavioral disorder characterized by ongoing patterns of uncooperative, defiant, hostile, and annoying behavior towards authority figures.

Torture

The act of inflicting severe pain or suffering on someone, often to punish, coerce, or obtain information.