Due 12/1/2019 DY Mum 1. Assume the following information Spot rate of Canadian dollar may in 90-day forward rate of Canadian dollar $0.80 So American aunts Duration1 A 5.79 90-day Canadian lending interest rate 4% 90-day Canadian borrowing interest rate 4.5% forward to bring 90-day U.S. lending interest rate 2.25% 90-day U.S. borrowing interest rate 2.5% -B back man a . Given this information, what is the appropriate covered interest arbitrage strategy? (Should you borrow in Canada and save in the U.S. or vice versa?) may B money to A ward contract off debt b. What market forces would occur to eliminate any further possibilities of covered interest arbitrage? c. What does the 90-day forward rate tell you about the expected future spot rate