Assume the Following Information:​ You Have $1,000,000 to Invest

Multiple Choice

Assume the following information:​ You have $1,000,000 to invest:
Current spot rate of pound
=
$1) 60
90-day forward rate of pound
=
$1) 57
3-month deposit rate in U.S.
=
3%
3-month deposit rate in U.K.
=
4%
​
If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?

A) ​$1,020,500
B) ​$1,045,600
C) ​$1,073,330
D) ​$1,094,230
E) ​$1,116,250