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Assume the following information: You have $1,000,000 to invest: Current spot rate of pound 90-day forward rate of pound 3-month deposit rate in U.S. 3-month

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Assume the following information: You have $1,000,000 to invest: Current spot rate of pound 90-day forward rate of pound 3-month deposit rate in U.S. 3-month deposit rate in U.K. $1.60 $1.57 3% 4% If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days? $1.045,600 $1,020,500 $1,073,330 $1.094,230

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