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A foreign exchange trader can invest US$6 million, or the foreign currency equivalent in a covered interest arbitrage. Using the following quotes, what should the

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A foreign exchange trader can invest US$6 million, or the foreign currency equivalent in a covered interest arbitrage. Using the following quotes, what should the US interest rate be to achieve interest rate parity?(rounded) Arbitrage Funds available $6,000,000 Spot exchange rate (AU$/US$) 0.6828 200-day forward rate (AU$/US$) 0.6788 200-day US dollar interest rate 2.8% 200-day Australian interest rate 2.1% 2.15% 2.70% 1.50% 1.03% O 3.17%

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