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Question 8 1 pts You have a credit line of $10.000.000 in the US and CD 12,500,000 in Canada, and you can borrow and lend

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Question 8 1 pts You have a credit line of $10.000.000 in the US and CD 12,500,000 in Canada, and you can borrow and lend at the prevailing rates of interest in these two countries. Current spot rate of CD = 50.800. Expected spot rate for CD, one year from now = $0.830. Interest rate is 7.00% in the US and 5,00% in Canada. If the current 1-year forward rate for CD = $0.812 and you wanted to set up a covered interest rate arbitrage, you should borrow in and invest in US Dollars: Canadian Dollars Canadian Dollars US Dolls

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