Assume the following information:

Quoted Price

Spot rate of U$.$S$.$ dollar

AUD$1\mathrm{.}2500/$USD

$180-$day forward rate of U$.$S$.$ dollar

AUD$1\mathrm{.}2800/$USD

$180-$day Australian interest rate $($a periodic rate$)$

$4\mathrm{.}75\%$

$180-$day U$.$S$.$ interest rate $($a periodic rate$)$

$3\mathrm{.}10\%$

A$.$ What USD$-$denominated percent rate of return can a US investor earn if they attempt

covered interest arbitrage? $($to two decimal places like $6\mathrm{.}54\%)$

B$.$ What AUD$-$denominated percent rate of return can an Australian investor earn if they

attempt covered interest arbitrage? $($to two decimal places like $6\mathrm{.}54\%)$

C$.$ Given this information, who has a covered interest arbitrage opportunity?

Answer either "Australian investors" or $"$U$.$S$.$ investors".

D$.$ What changes in the $2$ quoted prices above would likely occur to eliminate any further

possibilities of covered interest arbitrage? $($answer with just darr or $t)$

Spot rate of U$.$S$.$ dollar

$180-$day forward rate of U$.$S$.$ dollar