The one-year interest rate in Canada is 3 percent. The one-year U.S. interest rate is 9.5 percent. The spot rate of the Canadian dollar (C$) is $0.40. The forward rate of the Canadian dollar is $0.42. (1) is covered interest arbitrage feasible for U.S. investors? (2) Is it feasible for Canadian investors? In each case, explain why covered interest arbitrage is or is not feasible. O a. (1) US investors can benefit from covered interest arbitrage because this yield exceeds the interest rate of 9.5%. (2) Canadian investors can benefit from covered interest arbitrage since the yield of 4.78% exceeds 3% that they could receive from investing their funds in Canada. O b. (1) US investors can benefit from covered interest arbitrage because this yield of 9.86% exceeds the interest rate of 9.5%. (2) Canadian investors can't benefit from covered interest arbitrage since the yield of 2.56% exceeds 3% that they could receive from investing their funds in Canada. O C. US investors can't benefit from covered interest arbitrage because this yield of 8.15% is less than the interest rate of 9.5%. (2) Canadian investors can benefit from covered interest arbitrage since the yield of 4.29% exceeds 3% that they could receive from investing their funds in Canada. O d. (1) US investors can't benefit from covered interest arbitrage because this yield of 7.52% is less than the interest rate of 9.5%. (2) Canadian investors can benefit from covered interest arbitrage since the yield of 3.56% exceeds 3% that they could receive from investing their funds in Canada.