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The spot rate between Canada and the U.S. is Can$1.2410/$, while the one-year forward rate is Can$1.2409/$. The risk-free rate in Canada is 4.39 percent
The spot rate between Canada and the U.S. is Can$1.2410/$, while the one-year forward rate is Can$1.2409/$. The risk-free rate in Canada is 4.39 percent and risk-free rate in the United States is 2.64 percent. How much in profit can you earn on $6,000 utilizing covered interest arbitrage?
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