Assume the following information: Given this information, what would be the yield (percentage return) to a U.S.
Question:
Assume the following information:
Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1 million.) What market forces would occur to eliminate any further possibilities of covered interest arbitrage?
Transcribed Image Text:
Spot rate of Canadian dollar = $.80 90-day forward rate of Canadian dollar = $.79 90-day Canadian interest rate =4% 90-day U.S. interest rate = 2.5%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Let X1, . . . ,Xn be i.i.d. Uniform(0, ) random variables. Define Xn:n = max1kn Xk and use (Xn:n, (1 + 2n)Xn:n) as a confidence interval for . What is the probability that the interval contains the...
-
Find the measure of chord MP L 5.2 6 M X 16.4 units 8.49 units 72.16 units 11.2 units P
-
Instructions Final Question Instructions Chart of Accounts Schedule of Division of Income Journal Statement of Members' Equity Exploit Media, LLC, has three members: WACS Partners, Elyse O'Reilly,...
-
Beck Manufacturing reports the following information in T-account form for 2019. The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished...
-
The following formulas can be used to find sums of powers of natural numbers. Use mathematical induction to prove each formula. nn 1) 123++n- 12 + 22 + 32 + . . . +n-n(n +1)(2n + i) 6 13 + 23 33...
-
Listed below are a few events and transactions of Kodax Company. 2015 Jan. 2 Purchased 22,720 shares of Grecco Co. common stock for $418,000 cash plus a broker's fee of $4,000 cash. Grecco has 71,000...
-
Machine Part Suppliers Your company buys machine parts from three different suppliers. Make a tree diagram that shows the three suppliers and whether the parts they supply are defective. Graphical...
-
A soprano and a bass are singing a duet. While the soprano sings an A# at 932 Hz, the bass sings an A# but three octaves lower. In this concert hall, the density of air is 1.20 kg/m3 and its bulk...
-
An extract of a standard cost card shows the following details of Product A: RM per unit Variable overheads 5 machine hours at RM 1 0 per machine hours 5 0 . 0 0 Fixed overhead 3 0 . 0 0 The actual...
-
Covered Interest Arbitrage. Assume the following information: Given this information, is covered interest arbitrage worthwhile for Mexican investors who have pesos to invest? Explain your answer....
-
Assume the following information: Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy...
-
Let x a (t) be a bandlimited signal with fixed bandwidth B and variance 2 x . (a) Show that the signal-to-quantization noise ratio. SQNR = 10log 10 ( 2 x / 2 x ). Increase by 3 dB each time we...
-
Section Three Answer the questions below 1.While pulling out of her driveway, Bethany becomes distracted by a bee and strikes Melanie, who is riding past on a bicycle. Bethany suffers serious injury...
-
A __________ is a schedule periodic check of a specific process behavior. Question 1Answer A. Widget B. Dashboard C. Monitor D. Process ID
-
1. Was VAAF contractually obligated to pay Chad for refraining from smoking? 2. Was there consideration to support its promise to pay $500? 3. Are there other facts you need to know to make that...
-
Presented here are the comparative balance sheets of Hames Incorporated at December 31, 2023 and 2022. Sales for the year ended December 31, 2023, totaled $1,700,000.%0D%0A%0D%0AHAMES...
-
McDonald's conducts operations worldwide and is managed in two primary geographic segments: US, and International Operated Markets, which is comprised of Australia, Canada, France, Germany, Italy,...
-
The data that follow pertain to two of Japans best-known and most successful companies, Sony Corporation and Panasonic, Inc. (Numbers are in billions of yen.) Calculate cash flow yield, cash flows to...
-
Identify the most stable compound:
-
Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of ZAIN estimates and...
-
What is the NPV of a project with an initial investment of $350,000 and annual cash inflows of $150,000 for the next 10 years? Cost of capital is 13% A $436,721.21 B $442,901.59 C $452,932.43 D...
-
Journal DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Joumalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of...
Study smarter with the SolutionInn App