Assume the Following Information: U

Assume the following information: U.S. investors have $1,000,000 to invest:
1-year deposit rate offered by U.S. banks
=
10%
1-year deposit rate offered on British pounds
=
13) 5%
1-year forward rate of British pound
=
$1) 26
Spot rate of British pound
=
$1) 30
​
Given this information:

A) interest rate parity exists and covered interest arbitrage by U.S. investors results in the same yield as investing domestically.
B) interest rate parity doesn't exist and covered interest arbitrage by U.S. investors results in a yield above what is possible domestically.
C) interest rate parity exists and covered interest arbitrage by U.S. investors results in a yield above what is possible domestically.
D) interest rate parity doesn't exist and covered interest arbitrage by U.S. investors results in a yield below what is possible domestically.