Assume that the nominal risk - free rate in Canada is 6 percent while it is 3 . 5 percent in the U.S . Assuming U . S . to be the home country , answer the following questions Is there an arbitrage opportunity available ? Show your workings ( 3 marks ) D) If your answer to ( 1 ) is yes , show the amount and currency of arbitrage profit if you start with US$1 000 000 . What do you call this profit ? ( 2 marks )