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2. Assume the following information: Spot rate of Brazilian real: $0.250 180-day forward rate of Brazilian real: $0.240 180-day Brazilian interest rate: 7% 180-day U.S.

2. Assume the following information: Spot rate of Brazilian real: $0.250 180-day forward rate of Brazilian real: $0.240 180-day Brazilian interest rate: 7% 180-day U.S. interest rate: 4% Given this information, is covered interest arbitrage worthwhile for American investors to invest in the Brazilian deposit? Explain your answer.

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