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43.Assume the following information. You have $1,000,000 to invest. Current sport rate of pound=$1.60 90-day forward rate of pound=$1.57 3-month deposit rate in U.S.=3% 3-month
43.Assume the following information. You have $1,000,000 to invest.
Current sport rate of pound=$1.60
90-day forward rate of pound=$1.57
3-month deposit rate in U.S.=3%
3-month deposit rate in U.K.=4%
If you use covered interest arbitrage for a 90-day investment, what will be the
amount of U.S. dollars you will have after 90 days?
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