Assume the Following Information

Multiple Choice

Assume the following information:
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You have $1,000,000 to invest:
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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?
Current spot rate of pound
=$1) 30
90-day forward rate of pound
=$1) 28
3-month deposit rate in United States
=3%
3-month deposit rate in Great Britain
=4%

A) $1,024,000.
B) $1,030,000.
C) $1,040,000.
D) $1,034,000.
E) none of the above