The interest rate (on an annual basis) on 6-month Treasury bills is 2% in Japan and 4% in the U.S. and the spot rate 120/$. If the 6-month forward rate is 118/$ and you have $1,000,000 to invest, what do you have to do to make a covered interest arbitrage profit?Assume you are a U.S. investor. Choose one answer

A. Do nothing today, just convert the Japanese yen to U.S. dollars at the spot rate at maturity

B. Enter into a forward today contract to sell U.S. dollars at maturity

C. Enter into a forward contract today to buy Japanese yen at maturity

D. Convert Japanese yen to U.S. dollars at the spot rate today then convert U.S. dollars to Japanese yen at the spot rate at maturity.

E. Enter into a forward contract today to sell Japanese yen at maturity