I already solved questions 5,,7. I need the answers for question 6, 8, and 9 with explanations.

A for 6 is wrong

C for 8 is wrong

B for 9 is wrong.

Use the following information for the next 5 Questions: Current spot rate of euro = $0.79 1-year forward rate of euro = $0.82 1-year deposit rate in U.S. = 14% 1-year deposit rate in Europe = 11% Question 5 (5.26 points) Saved You have $2,000,000 (US dollars) to invest. If you use covered interest arbitrage for a 1 year investment, what will be the amount of U.S. dollars you will have after one year? 51.438,116.00 $2,304.303.80 $2 138,780.49 $2.280,000.00 Question 6 (5.26 points) Saved Continued from the above question, does the cover interest arbitrage work for you as a U.S. investor? (HINT: Calculate the rate of return you (as a investor) get when implementing the covered interest arbitrage. Compare the rate of return you obtain from implementing the covered interest arbitrage and the rate of return you (as a U.S. investor) earn by investing in the U.S. directly.) No, the covered interest arbitrage doe not work because the yield is lower than 11% No, the covered interest arbitrage does not work because the yield is lower than 14% Yes the covered interest arbitrage works because the Vield is higher than 14%. Nes, the covered interest arbitrage works Lecause the viel is higher than 11% Question 7 (5.26 points) Saved Assume you're a European investor with 1,000,000. If you use covered interest arbitrage for a 1-year investment, what will be the amount of euros you will have after one year? 1,28,302.94 1 142,753.11 1,00.681.24 1.098.292.68 Question 8 (5.26 points) Saved Continued from the above question, does the cover interest arbitrage work for you as a European investor? (HINT: Calculate the rate of return you (as a European investor) get when implementing the covered interest arbitrage. Compare the rate of return you obtain from implementing the covered interest arbitrage and the rate of return you (as a European investor) earn by investing in the Europe directly.) No the covered interest arbitrage does not work because the yield is lower than 14% Yes, the covered interest arbitrage works because the yield is higher than 149. Yes, the covered interest arbitrage works because the veld is higher than 11%. Ne, the covered interest arbitrage does not work because the yield is lower than 1196 Question 9 (5.26 points) Saved Does Interest Parity hold under the current market condition? Yes. It cannot be determined. No