Assume the following information: Spot rate of Canadian dollar 90 day forward rate of Canadian dollar 90 day Canadian interest rate 90 day U.S. interest rate Quoted Price $0.80 50.79 4% 2.5% Given this information, what would be the yield (percentage return) to a U.5. investor who used covered interest arbitrage? (Assume the investor invests $4 million.) Round your answer to one decimal place. What market forces would occur to eliminate any further possibilities of covered interest arbitrage? 1. The Canadian dollar's spot rate should fall, and its forward rate should fall; in addition, the Canadian interest rate may rise and the U.S. interest rate may rise. 11. The Canadian dollar's spot rate should rise, and its forward rate should fall; in addition, the Canadian interest rate may fall and the U.S. interest rate may rise. III. The Canadian dollar's spot rate should fall, and its forward rate should rise; in addition, the Canadian interest rate may rise and the U.S. interest rate may fall. -Select- v