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4. Sedat Yorulmus, a foreign exchange trader at Bank of America, can invest $1.4 million, or the foreign currency equivalent of the bank's short term

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4. Sedat Yorulmus, a foreign exchange trader at Bank of America, can invest $1.4 million, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Turkey. Using the following quotes can Sedat make covered interest arbitrage (CIA) profit? If yes, how much is the profit? (25 pts) Assumptions Value $1400000 Arbitrage funds available 14.1740 Spot exchange rate (TL/S) 14.6410 6-month forward rate (TL/S) 2.000% US dollar annual interest rate 15.000% Turkish lira annual interest rate

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