Suppose the 1-Year Risk-Free Rate of Return in Canada Is

Suppose the 1-year risk-free rate of return in Canada is 2%.The current exchange rate is 1 pound = C $1.60.The 1-year forward rate is 1 pound = C $1.57.What is the minimum yield on a 1-year risk-free security in Britain that would induce a Canadian investor to invest in the British security?

A) -1.88%
B) .09%
C) 1.91%
D) 3.95%
E) none of these