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Covered Interest Arbitrage. Suppose you observe the following information on the USD and GBP spot rates, forward rate and interest rates: S= $1.60/ i$ =

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Covered Interest Arbitrage. Suppose you observe the following information on the USD and GBP spot rates, forward rate and interest rates: S= $1.60/ i$ = 2% F= $1.54/ F = 4% Profits from covered interest arbitrage per unit of currency invested are closest to: O A. 1.5692 B. $0.0197 O C. $1.5692 O D. 0.0197

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