Assume the Following Information:​

Multiple Choice

Assume the following information:​
You have $1,000,000 to invest:
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=$1.60
90-day forward rate of pound=$1.57
3-month deposit rate in U.S.=3%
3-month deposit rate in U.K.=4%

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