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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 return? (Answer in two decimal in percent: if the answer is 5.58%, write 5.58)
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
