Suppose it faces the following exchange and interest rates.

Spot rate: $0.9422-31/Can$

Forward rate (90 days): $0.9440-61/Can$

Canadian dollar 90-day interest rate (annualized): 4.71%−4.64%

U.S. dollar 90-day interest rate (annualized):5.50%−5.35%

What is the cost in $ for the alternative that you would NOT recommend?

Note that the first interest

rate is the borrowing rate and the second one is the lending rate.