Assume the Following Information Given the Information in This Question, the Return from Covered

Multiple Choice

Assume the following information:
$$\begin{array} { l l r } \text { Current spot rate of Australian dollar } & = & \$ .64 \\\text { Forecasted spot rate of Australian dollar 1 year from now } & = & \$ .59 \\\text { 1-year forward rate of Australian dollar } & = & \$ .62 \\\text { Annual interest rate for Australian dollar deposit } & = & 9 \% \\\text { Annual interest rate in the U.S. } & = & 6 \%\end{array}$$
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $500,000 to invest is ____%.

A) about 6.00
B) about 9.00
C) about 7.33
D) about 8.14
E) about 5.59