A foreign exchange trader can invest US$6 million, or the foreign currency equivalent in a covered interest arbitrage. Using the following quotes, should the trader make a covered interest arbitrage and if so, how much would be the rate of return? 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% O Yes; 1.50% O Yes; 2.70% o Yes; 0.57% O No; 0% Yes; 1.76%