Henri Jacque is an arbitrager with Bank of Montreal, Montreal, Canada. The bank's home currency is the Canadian dollar (CAD or C$).

He is authorized to engage in transactions subject to a maximum of C$20,000,000. His bank expects him to earn his profits in Canadian dollars (C$). He is studying the market data as shown below:

Spot rate	C$1.4900/$
6-month forward rate	C$1.5100/$
6-month interest for C$	7.5000 % p.a.
6-month interest for $	5.0000 % p.a.

Assume that the interest rates reported are for both borrowing and investing.

Given these rates, is a Covered Interest Arbitrage feasible?Yes or No. Blank 1 (2 Points)

Ascertain arbitrage profits or losses, if any. Use negative sign for loss. C$ Blank 2. (3 Points)