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The current spot rate is C$1.400 and the one-year forward rate is C$1.344. The nominal...

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Finance

The current spot rate is C$1.400 and the one-year forward rate is C$1.344. The nominal risk-free rate in Canada is 4 percent while it is 8 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.

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72. The current spot rate is C$1.400 and the one-year forward rate is C$1.344. The nominal risk-free rate in Canada is 4 percent while it is 8 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. $.0000 B. $.0033 C. $.0040 D. $.0833 E. $.0840

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