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25. The 1-year forward rate for Hong Kong dollars HK$8.1396 per $1. The rate on a risk-free Hong Kong asset is 5%. The spot rate

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25. The 1-year forward rate for Hong Kong dollars HK$8.1396 per $1. The rate on a risk-free Hong Kong asset is 5%. The spot rate is HK$7.98 per $1. Approximately what rate can you earn by investing in the Canadian risk-free security for one year? A. 8.2% B. 7.0% C. 2.0% I D. 3.0% E. none of the above

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