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Please use the data below, to answer the following question. Interest rate in US (Rh): 5% Interest rate in Canada (Rh): 7% The current

Please use the data below, to answer the following question. Interest rate in US (Rh): 5% Interest rate in Canada (Rh): 7% The current spot rate for CAD $0.800 (SO): 1-year forward rate for CAD (F): $0.781 The covered interest rate arbitrage trades that this will generate will cause:

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