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Question 8 (3.7 points) Assume the following information: Current spot rate of Australian dollar Forecasted spot rate of Australian dollar 1 year from now =

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Question 8 (3.7 points) Assume the following information: Current spot rate of Australian dollar Forecasted spot rate of Australian dollar 1 year from now = 1-year forward rate of Australian dollar Annual interest rate for Australian dollar deposit Annual interest rate in the US $.64 $.59 $.62 9% 6% Given the information in this question, the return from covered interest arbitrage by U.S. investors with $500,000 to invest is 96 about 7.33 about 9.00 about 8.14 about 6.00 about 5.59

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