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?
Get Answers For Free
Most questions answered within 1 hours.