Question
2. The following is market information: Current spot rate of pound = $1.30 90-day forward rate of pound = $1.31 3-month deposit rate in U.S.
2. The following is market information: Current spot rate of pound = $1.30
90-day forward rate of pound = $1.31
3-month deposit rate in U.S. = 0.5%
3-month deposit rate in Great Britain = 1.0% I
f you have $500,000 and 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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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
