27. You are given the following information. You have $50,000 and the ability to additionally borrow S100,000. A British investor has 40,000 and the ability to borrow 80,000. (30 points) Bid Quote $1.635 Ask Quote $1.64 Spot rate for the British pound $1.645 $1.64 90-day Forward rate for the British pound Deposit Rate 11% Borrow Rate 11.85% 10.2% Annual Interest Rate in the U.S. Annual Interest Rate in the U.K. 8% Determine if covered interest arbitrage is possible for you and for the British investor. Calculate your total gain or loss if you act rationally. Your answer can be in percentages (yields) or in dollars and pounds. Assume that if arbitrage is not possible, then the investor will simply deposit the money into their home country and gain the interest. 27. You are given the following information. You have $50,000 and the ability to additionally borrow S100,000. A British investor has 40,000 and the ability to borrow 80,000. (30 points) Bid Quote $1.635 Ask Quote $1.64 Spot rate for the British pound $1.645 $1.64 90-day Forward rate for the British pound Deposit Rate 11% Borrow Rate 11.85% 10.2% Annual Interest Rate in the U.S. Annual Interest Rate in the U.K. 8% Determine if covered interest arbitrage is possible for you and for the British investor. Calculate your total gain or loss if you act rationally. Your answer can be in percentages (yields) or in dollars and pounds. Assume that if arbitrage is not possible, then the investor will simply deposit the money into their home country and gain the interest