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4) Here are some prices in the international money markets Spot rate $1.46/ Forward rate $1.497 Interest rate () 7% per year Interest rate ($)
4) Here are some prices in the international money markets Spot rate $1.46/ Forward rate $1.497 Interest rate () 7% per year Interest rate ($) 9% per year Assuming you have $1,000,000 to invest. Explain if IRPT holds? In which country would you invest? (calculate the profit) Describe the flows 4) Here are some prices in the international money markets Spot rate $1.46/ Forward rate $1.497 Interest rate () 7% per year Interest rate ($) 9% per year Assuming you have $1,000,000 to invest. Explain if IRPT holds? In which country would you invest? (calculate the profit) Describe the flows
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