Please help with the following:

Given the following information: The US. interest rate is 6% per year. The CADIUSD spot rate is 2.2. The CAD one-year fonNard rate is 2 CADIUSD. The domestic Canadian interest rate is 8% per year. 0000 Which of the following statements are TRUE? I. Capital will ow into Canada. II. If you start by borrowing $1000, your arbitrage profits will be $128. III. Ifyou start by borrowing 1000 CAD, your arbitrage profits will be 116 CAD. IV. To arbitrage, borrow Dollars at 6%, convert them to CADs and lend the CADs out at 8%