24. Heidi Jensen, a foreign exchange trader at JP Morgan Chase, can invest $5M or the currency equivalent of the banks short term funds in
24. Heidi Jensen, a foreign exchange trader at JP Morgan Chase, can invest $5M or the currency equivalent of the banks short term funds in a Covered Interest Arbitrage with Denmark. Using the following quotes, can Heidi make a CIA profit? Arbitrage fund available: $5M Spot Exchange rate (KR/$): 6.1720 3 Month forward rate: (Kr/$): 6.1980 U.S. Dollar 3 month interest rate: 3.00% Danish Kroner 3 month interest rate: 5.00%
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Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
