5. One-year interest rates are 2% in the U.S. and 5% in Canada. Jackie the carry trader borrows $3,000,000 to execute a carry trade. At the start, the exchange rate is $.881/CAD. After one year, the exchange rate is $.865/CAD

A. What is Jackies USD profit or loss over the year?

B. When Jackie starts this trade, she is hoping that the Canadian dollar doesnt ______________.

C. When Jackie starts this trade, she is hoping that the USD doesnt ______________.

D. What is the BEEX in one year? (place in terms of USD/CAD to 4 decimal places