Question
assume interest rate on CAD is 2.62% per annum while interest rate on EUR is 7.28% per annum. Spot rate of CAD/EUR is $1.4747 and
assume interest rate on CAD is 2.62% per annum while interest rate on EUR is 7.28% per annum. Spot rate of CAD/EUR is $1.4747 and the one-year forward rate of CAD/EUR is $1.4513. What arbitrage profit can be made on an investment amount of CAD 1 million? (two decimal places)
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
