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Are these quotes conforming to interest rate parity (IRP), or is covered interest arbitrage possible? If yes, calculate CIA profit if you begin with
Are these quotes conforming to interest rate parity (IRP), or is covered interest arbitrage possible? If yes, calculate CIA profit if you begin with either USS I million or DKr 60 million. Exchange Rates Spot Quotation: I Year Forward DKr/S 5.8100 / 5.8150 DKr/$ 5.7000 /5.7100 Interest Rates USS DKr Invest / Borrow. 5.75% / 5.875% 3.50% / 3.625%
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
