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Assume the following information: U.S. investors have $1,000,000 to invest: 1-year deposit rate offered on U.S. dollars 1-year deposit rate offered on Fijian dollars 1-year

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Assume the following information: U.S. investors have $1,000,000 to invest: 1-year deposit rate offered on U.S. dollars 1-year deposit rate offered on Fijian dollars 1-year forward rate of Fijian dollars Spot rate of Fijian dollar II II III 4% 2% $0.50 $0.48 If U.S. investors use covered interest arbitrage for a 1-year investment, what will be the amount of U.S. dollars U.S. investors will have after one year? $1,083,333.33 $1,06,250.00 $4,333,333.33. $2,166,666.67

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