Casper Landsten is a foreign exchange trader who has access to $1 million (or its Swiss Franc equivalent). Assume the spot exchange rate is 1.29 SFr/$ and the 3-month forward rate is 1.285 SFr/$. Also assume that the US dollar 3-month interest rate (annualized) is 4.5% and that the Swiss franc 3-month interest rate (annualized) is 3.2%. In order to complete a successful covered interest arbitrage, Landsten should:

Group of answer choices

borrow francs and invest in francs

borrow dollars and invest in dollars

borrow dollars and invest in francs

borrow francs and invest in dollars