Consider the Following: If the Market Futures Price Is

Multiple Choice

Consider the following: If the market futures price is 1.69 A$/$, how could you arbitrage?

A) Borrow Canadian dollars in Canada, convert them to dollars, lend the proceeds in the United States, and enter futures positions to purchase Canadian dollars at the current futures price.
B) Borrow U.S.dollars in the United States, convert them to Canadian dollars, lend the proceeds in Canada, and enter futures positions to sell Canadian dollars at the current futures price.
C) Borrow U.S.dollars in the United States, invest them in the U.S., and enter futures positions to purchase Canadian dollars at the current futures price.
D) Borrow Canadian dollars in Canada and invest them there, then convert back to U.S.dollars at the spot price.