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1 pts You have a credit line of $10,000,000 in the US and CD 12,500,000 in Canada, and you can borrow and lend at the

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1 pts You have a credit line of $10,000,000 in the US and CD 12,500,000 in Canada, and you can borrow and lend at the prevailing rates of interest in the two countries. Current spot rate of CD = $0.800. Expected spot rate for CD one year from now = $0.830. Interest rates 7.00 in the US and 5.00% in Canada. If the 1-yr current forward rate for CD $0.825. your covered interest arbitrage profitis $534 375 $124.242 $128,125 $341,775

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