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4. You see the following quotes: S, = C$1.2050/$, F4+6 = C$1.2100/$, ics = 4%, and is = 3%. (a) Do these rates offer covered

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4. You see the following quotes: S, = C$1.2050/$, F4+6 = C$1.2100/$, ics = 4%, and is = 3%. (a) Do these rates offer covered interest arbitrage opportunity? (b) If yes, which way the arbitrage capital move? Calculate the arbitrage profit. (20 points)

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