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

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. (A) (2 Points)

Ascertain arbitrage profits or losses, if any. Use negative sign for loss. C$ (B]. (8 Points)