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26. Determine if any arbitrage is possible for US, y arbitrage is possible for U.S. investor in the following scenarios. (20 points) A) Spot rate
26. Determine if any arbitrage is possible for US, y arbitrage is possible for U.S. investor in the following scenarios. (20 points) A) Spot rate for the British pound Quote $1.63 S1.70 11% Forward rate for the British pound Annual Interest Rate in the U.S. Annual Interest Rate in the U.K. 8% B) Quote $1.70 Spot rate for the British pound $1.63 9% Forward rate for the British pound Annual Interest Rate in the U.S. Annual Interest Rate in the U.K. 11.5% Bid Quote $1.60 Ask Quote $1.62 Spot rate for the British pound Spot rate for the Euro Spot rate for the Euro in British pound. $1.20 0.74 $1.21 0.745 D) Bid Quote 0.621 Ask Quote 0.617 Spot rate for the British pound Spot rate for the NZ$ Spot rate for the NZ$ in British pound. NZ$1.82 0.339 NZS1.786 0.338
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