Assume the current spot rate is c10875 and the one-year, Ask an Expert

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Assume the current spot rate is C$1.0875 and the one-year forward rate is C$1.0724. The nominal risk-free rate in Canada is 4 percent while it is 3 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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Financial Management, Finance

Category:- Financial Management
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