3. Covered Interest Arbitrage Assume the following information: Spot rate of British pound 90-day forward rate of British pound 90-day British interest rate 90-day U.S. interest rate $1.25 $1.23 4.0% 2.0% Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1 million.) What market forces would occur to eliminate any further possibilities of covered interest arbitrage? (1 point)