Which of the following is true? Assume that a U.S. firm can invest funds for one year in the U.S. at 12% or invest funds for one year in Argentine at 14%. The spot rate of the Argentine peso is $0.09 while the one-year forward rate of the Argentine peso is $0.09. According to interest rate parity. (IRP), the spot rate of the Argentine peso increases and the forward rate of the Argentine peso increases. If the interest rate is lower in the U.S. than in the United Kingdom, and if the forward rate of the British pound is the same as its spot rate, U.S. investors could possibly benefit from covered interest arbitrage. Assume that the interest rate in the home country of Currency Y is a much lower interest rate than the U.K. interest rate. According to interest rate parity, the forward rate of Currency Y should exhibit a discount. According to interest rate parity (IRP), the forward rate differs from the spot rate by a sufficient amount to offset the inflation differential between two currencies