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Answer the following three questions using the next information. CIA Questions USD GBP Interest Rate 4% 3% Spot GBP/USD $ 1.30 Forward GBP/USD $ 1.3200

Answer the following three questions using the next information.

CIA Questions
USD GBP
Interest Rate 4% 3%
Spot GBP/USD $ 1.30
Forward GBP/USD $ 1.3200

Assume that you can borrow and lend (deposit) 1,000,000 each currency.

What is the CIA PMT in borrowing currency?

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