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Assume the following information: You have $2,000,000 to invest: = Current spot rate of pound 90-day forward rate of pound 3-month deposit rate in U.S.

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Assume the following information: You have $2,000,000 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 Great Britain $1.30 $1.32 4% 3% II If you use covered interest arbitrage for a 90-day investment, what will be the U.S. dollars profit you will have after 90 days? O $98,721 O $1,032,000. O $85,365 O $91,692 O none of the above

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