Assume the Current Spot Rate Is C$1

question 73

Multiple Choice

Assume the current spot rate is C$1.2103 and the one-year forward rate is C$1.1925.The nominal risk-free rate in Canada is 3 percent while it is 4 percent 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)$0.005
• B)$0.006
• C)$0.008
• D)$0.015
• E)$0.018

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Definitions:

Dorsal Horn Neurons

are neurons located in the dorsal horn of the spinal cord, playing a crucial role in processing sensory information.

Dorsal Horns

The part of the spinal cord away from the stomach that receives sensory input and that may play an important role in the perception of pain.

Spinal Cord

The main pathway for information connecting the brain and peripheral nervous system, crucial for sensory and motor functions below the head.

Bradykinin

A peptide that causes blood vessels to dilate (expand), resulting in lower blood pressure and increased blood flow to certain areas of the body.