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please answer A B C Henri Jacque, an arbitrageur with Bank of Montreal, faces the following Canadian dollar/U.S. dollar quotes: (C$ stands for Canadian dollars)

image text in transcribedplease answer A B C
Henri Jacque, an arbitrageur with Bank of Montreal, faces the following Canadian dollar/U.S. dollar quotes: (C$ stands for Canadian dollars) Spot Rate: C$1.2400/US$ 6-month Forward Rate: C$1.3000/US$ 6-month Interest Rate on U.S. dollars: 2.00% per annum 6-month Interest Rate on Canadian dollars: 6.00% per annum a) How many Canadian dollars would you received if you invested C$100 in the US for 6 months, and if you invested C$100 invested in Canada for 6 months? (6 pts) FV of C$100 invested in Canada in 6 months in Canadian dollars) - FV of C$100 invested in the USA in 6 months in Canadian dollars) - b) State the country in which Henri should invest and the country from which Henri should borrow. (2 pts) c) Henri Jacque is authorized to use C$2,000,000 or its U.S. dollar equivalent. Henri would like to form a Covered Interest Arbitrage, and he wants to keep all his profits in Canadian dollars. List all FOUR transactions at Time 0, their amounts and their currency denominations involved at the time when Henri forms the arbitrage. (8 pts)

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