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A. What % ROR can a US investor earn if they attempt covered interest arbitrage? B. What % ROR can an Australian investor earn if
A. What \% ROR can a US investor earn if they attempt covered interest arbitrage? B. What \% ROR can an Australian investor earn if they attempt covered interest arbitrage? C. Given this information, who has a covered interest arbitrage opportunity? Answer either "Australian investors" or "U.S. investors". D. What changes in the 4 quoted prices above would likely occur to eliminate any further possibilities of covered interest arbitrage? (answer with just or ) Spot rate of Australian dollar 180-day forward rate of Australian dollar 180-day Australian interest rate (a periodic rate) 180-day U.S. interest rate (a periodic rate) A. What \% ROR can a US investor earn if they attempt covered interest arbitrage? B. What \% ROR can an Australian investor earn if they attempt covered interest arbitrage? C. Given this information, who has a covered interest arbitrage opportunity? Answer either "Australian investors" or "U.S. investors". D. What changes in the 4 quoted prices above would likely occur to eliminate any further possibilities of covered interest arbitrage? (answer with just or ) Spot rate of Australian dollar 180-day forward rate of Australian dollar 180-day Australian interest rate (a periodic rate) 180-day U.S. interest rate (a periodic rate)
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