Suppose the interest rate in the US is .035 (3.5%), the interest rate in the Mexico is .085 (8.5%), the current spot exchange rate is MXP 19.1 and the current forward exchange rate is MXP 19.8.

A) What is the covered return for an investor that decides to take $100, convert it to Pesos, invest that money in Mexico for 1 year, and uses the forward rate to then convert those Pesos back into dollars?