7 Covered interest arbitrage. Granville SA has 2 million euro in cash available for 90 days. It...

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7 Covered interest arbitrage. Granville SA has 2 million euro in cash available for 90 days. It is considering the use of covered interest arbitrage, since the euro’s 90-day interest rate is higher than the euro interest rate. What will determine whether this strategy is feasible?

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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