Covered interest arbitrage. Assume the following information:

Given this information, what would be the yield (percentage return) to a UK investor who used covered interest arbitrage? (Assume the investor invests £1,000,000.)
What market forces would occur to eliminate any further possibilities of covered interest arbitrage?

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Spot rate of Canadian dollar 90-day forward rate of Canadian dollar = 0.4400 = 0.4345 90-day Canadian interest rate 90-day UK interest rate = 4% = 2.5%