Question
4. Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $5 million, or the foreign currency equivalent of the bank's short
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4. Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $5 million, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Denmark. Using the following quotes can Heidi make covered interest arbitrage (CIA) profit on 3-month? | |||||||
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| Assumptions | Value |
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| Arbitrage funds available | $5.000.000 |
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| Spot exchange rate (kr/$) | 6.1720 |
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| 3-month forward rate (kr/$) | 6.1980 |
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| US dollar interest rate | 3.000% |
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| Danish kroner interest rate | 5.000% |
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The Organic Farmers Business Handbook A Complete Guide To Managing Finances Crops And Staff And Making A Profit
Authors: Richard Wiswall
1st Edition
1603581421, 978-1603581424
