Question the current spot rate is c1377 and the one-year, Ask an Expert

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Question: The current spot rate is C$1.377 and the one-year forward rate is C$1.316. 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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Category:- Basic Finance
Reference No.:- M92802692

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