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Question 10 Please use the data below, to answer the following question. Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit

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Question 10 Please use the data below, to answer the following question. Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit in US: Line of credit in Canada: 5% 7% USD 10,000,000 CAD 10,000,000 $0.800 The current spot rate for CAD (So): 1-year forward rate for CAD (F): $0.791 O CAD 80,531 O USD 200,000 O USD 79.625 O CAD 39,844) Your covered interest arbitrage profit is: 10 pts

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