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Please answer part A and B. thanks 3. Assume the following information: Spot rate of Canadian dollar- $.80 90-day forward rate of Canadian dollar -

Please answer part A and B. thanksimage text in transcribed

3. Assume the following information: Spot rate of Canadian dollar- $.80 90-day forward rate of Canadian dollar - $.79 90-day Canadian interest rate-4% 90-day US interest rate-2.5% a. Explain the steps you would use in covered interest arbitrage with S1 million b. What would be your profit

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