Which Statement Best Describes How Rate of Return Parity Happens

Multiple Choice

Which statement best describes how rate of return parity happens?

A) The expected depreciation of the Canadian dollar is currently lowering demand for it.
B) The price of apples is the same in Canada and the U.S., adjusting for the exchange rate.
C) The market feeling is that the Canadian dollar is overvalued and will likely appreciate.
D) The recent high Canadian interest rate has decreased the supply of Canadian dollars.
E) None of the above.