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Akemi Yamada a foreign exchange trader at Credit Suisse (Tokyol is exploring covered interest arbitrage CIA possibilities. She wants to invest $con.corisyen equivalent, in a
Akemi Yamada a foreign exchange trader at Credit Suisse (Tokyol is exploring covered interest arbitrage CIA possibilities. She wants to invest $con.corisyen equivalent, in a covered interes She faced rate and rate quotes Assumptions Value Arbitrage funds available $900.00 Spot rate (1/5) 105,46 180-day forward rate (1/5) 104.79 180 day U.S. dollar interest rate 4.80% 180-day Japanese yen interest rate 3.40 What is the ci protit potential (%)/to 4-decimal placel - the difference in interest rates and the forward discount rate QUESTION 12 Based on the information above Question 11 on CIA), which currency should she borrow? Dollar Euro Yen Swiss Franc QUESTION 13 Based on the question above (Question 11 on CIA). What is her profit (arbitrage gain)? Akemi Yamada a foreign exchange trader at Credit Suisse (Tokyol is exploring covered interest arbitrage CIA possibilities. She wants to invest $con.corisyen equivalent, in a covered interes She faced rate and rate quotes Assumptions Value Arbitrage funds available $900.00 Spot rate (1/5) 105,46 180-day forward rate (1/5) 104.79 180 day U.S. dollar interest rate 4.80% 180-day Japanese yen interest rate 3.40 What is the ci protit potential (%)/to 4-decimal placel - the difference in interest rates and the forward discount rate QUESTION 12 Based on the information above Question 11 on CIA), which currency should she borrow? Dollar Euro Yen Swiss Franc QUESTION 13 Based on the question above (Question 11 on CIA). What is her profit (arbitrage gain)
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