Casper LandstenCIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He

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Casper Landsten—CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has

$1 million (or its Swiss franc equivalent) for a shortterm money market investment. Given the following quotes, should he invest in U.S. dollars for 90 days or make a covered interest arbitrage (CIA) investment in the Swiss franc?

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Multinational Business Finance

ISBN: 9781292097879

14th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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Question Posted: Jun 04, 2024 01:02 AM

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Casper LandstenCIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He

Question:

Funds available $1,000,000 Spot exchange rate (SFr/$) 0.9502 90-day forward rate (SFr/$) 0.9410 U.S. dollar 90-day interest rate 3.80% Swiss franc 90-day interest rate 5.30%

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Multinational Business Finance

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