Problem 4 Intro The annual risk-free interest rate is 8% in the U.S. and 7% in Mexico. The spot rate is $0.051 per peso and the one-year forward rate is $0.052 per peso. Part 1 Attempt 1/5 for 10 pts. Who can profit from covered interest arbitrage, and how? Ignore taxes and transaction costs No one can profit from covered interest arbitrage. OU.S. Investors can profit by buying pesos in the forward market. Mexican investors can profit by buying dollars in the forward market. O U.S. investors can profit by selling pesos in the forward market. Mexican investors can profit by selling dollars in the forward market. Submit