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5. Quotes for the US dollar and Thai Baht {Btll are as follows: Spot contract midpoint = Bt24.9+5f$ 1-year forward to ntract midpoint = BtESJS-dfs

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5. Quotes for the US dollar and Thai Baht {Btll are as follows: Spot contract midpoint = Bt24.9+5f$ 1-year forward to ntract midpoint = BtESJS-dfs 1-year Eurodollar interest rate = 6.125% annually a. Tour newspaper does not quote 1-year Eu rocurre noy interest rates on Thai baht. Make your own estimate- h. Suppose that you can either borrow or lend at a Thai Eurocurrency interest rate of 10% per year. Based on a $1 million initial amount. howr much prot can you generate through covered interest arbitrage

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