Currently, the spot exchange rate is $1.11/eand the 3-month forward exchange rate is $1.09/e. The 3-month interest rate is 1.25 percent in Canada and 1 percent in Europe. Assume you can borrow as much as $1,110,000 ore1,000,000. Show how you can carry out covered interest arbitrage. Show all the steps and determine the arbitrage profit. What $/espot exchange rate will eliminate covered interest arbitrage?