Assume the following information: Spot rate of Mexican peso : $.100 180-day forward rate of Mexican peso : $.098 180-day Mexican interest rate : 6% 180-day U.S. interest rate : 5% a) What would be the return to a Mexican investor who has 1,000,000 Mexican pesos from using covered interest arbitrage? (i.e. the Mexican investor will convert the peso into U.S. dollar at the spot rate and invest it in the U.S. for 180 days, and simultaneously sell a U.S. dollar currency forward contract with the same maturity). Does the return exceed the return from investing in Mexico over the 180-day period? Is it worthwhile for the Mexican investor to invest in the U.S.? b) Is it worthwhile for a U.S. investor who uses a covered interest arbitrage for investing in Mexico?