David estimated a six-month forward rate of C$1.01 per US$. The six-month US$ interest rate is currently 4%. If David's estimate is based on covered interest rate parity, what was the observed current six-month Canadian interest rate, if the spot rate is 1.02?

Question 24 options:

a) 5.03%

b) 2.03%

c) 2.98%

d) 2.05%