Question
Assume the following information: U.S. investors have $1,000,000 to invest: 1-year deposit rate offered by U.S. banks = 10% 1-year deposit rate offered on British
Assume the following information:
U.S. investors have $1,000,000 to invest:
1-year deposit rate offered by U.S. banks | = | 10% |
1-year deposit rate offered on British pounds | = | 13.5% |
1-year forward rate of Swiss francs | = | $1.26 |
Spot rate of Swiss franc | = | $1.30 |
Given this information:
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