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he current spot rate is C$1.373 and the one-year forward rate is C$1.315. The nominal risk-free rate in Canada is 4 percent while it is

he current spot rate is C$1.373 and the one-year forward rate is C$1.315. The nominal risk-free rate in Canada is 4 percent while it is 8 percent in the U.S. Using covered interest arbitrage you can earn an extra _____ profit over that which you would earn if you invested $1 in the U.S. a. $0.0839 b. $0.0059 c. $0.0459 d. $0.0000 e. $0.0780

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