Question
A British investor can borrow 3% in the UK and invest at 5% in Australia Spot Today GBP/AUD Bid : 1.83 Ask: 1.84 Spot in
A British investor can borrow 3% in the UK and invest at 5% in Australia
Spot Today GBP/AUD Bid : 1.83 Ask: 1.84
Spot in 1 year GBP/AUD Bid: 1.87 Ask: 1.88
Compute the profit/loss generated by this carry trade. Show your work.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
