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Question 6 -- / 5 You have been provided with the information below: Amount to invest = AUD 10,000 Spot rate of = AUD 1.80

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Question 6 -- / 5 You have been provided with the information below: Amount to invest = AUD 10,000 Spot rate of = AUD 1.80 1-year forward rate of = AUD 1.76 1-year British interest rate = 5% 1-year Australian interest rate = 4% Based on this information, is it more profitable to invest in Australian dollars or engage in covered interest arbitrage? How much is the difference between the two investment options after 1 year

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