The spot rate of the U.S. dollar is C$1 = $.94US while the forward rate for one year is C$1 = $.92US. The nominal risk-free rate is 3% in the U.S. and 2% in Canada. How much profit can you make given this situation using covered interest arbitrage?

Select one:

a. $0.03

b. -$0.01

c. $0.01

d. -$0.04

e. $0.05