Hi, there are 3 questions below, thanks!

You observe the following information spot rate = $1.65; 1-year forward rate = $1.75; U.S. 1-year interest rate =1.8%; U.K. 1-year interest rate = 3.2%

The arbitrage trading will make:

A. USD interest rate drops

B. GBP appreciate in spot market

C. USD depreciate in forward market

D. GBP interest rate increases

Assume that today, the spot exchange rate is CAD1.00 = USD0.90 and the rates of inflation expected to prevail for the next year in the U.S. is 4% and 3% in Canada. What is the one-year forward rate that should prevail?

You observe the following information spot rate = $1.65; 1-year forward rate = $1.75; U.S. 1-year interest rate =1.8%; U.K. 1-year interest rate = 3.2% The appropriate covered interest arbitrage strategy is:

A. Borrow GBP, convert to USD, invest in USD and eventually sell USD according to forward contract to get GBP to pay for the GBP loan.
B. Borrow GBP, convert to USD, invest in USD and eventually sell USD on spot market to get GBP to pay for the GBP loan.
C. Borrow USD, convert to GBP, invest in GBP and eventually sell GBP on spot market to get USD to pay for the USD loan.
D. Borrow USD, convert to GBP, invest in GBP and eventually sell GBP according to forward contract to get USD to pay for the USD loan.