Define covered interest parity. You may use a diagram to assist youranswer
Page 2Question 1(a)Suppose a Canadian investor has CAD 1 million to invest for 90 days. The currentspot rate between CAD and USD is that 1 USD = 1.1239 CAD. He is considering twooptions: Option 1: He can invest this money in a local bank in Toronto, and earn annualisedreturn of 0.75%. Option 2: Alternatively, he […]