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A foreign exchange trader, authorized to trade $3 million, faces the following quotes: Spot Rate=$1.5000 / F 6 months = $1.5625/ US interest rate =

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A foreign exchange trader, authorized to trade $3 million, faces the following quotes: Spot Rate=$1.5000 / F 6 months = $1.5625/ US interest rate = 6% per annum = 3.00% per six months) UK interest rate = 5% per annum (= 2.50% per six months) Approximately, how much additional profit can the trader make via one covered interest arbitrage transaction? Select one: a. $113,125 b. $203,125 c. $15,000 d. $90,000

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