Question
Assume the following Spot rate: $1.6500 / Forward rate: $ 1.6000/ Interest rate in the US: 2.00% Interest rate in the UK: 2.10% What is
Spot rate: $1.6500 /
Forward rate: $ 1.6000/
Interest rate in the US: 2.00%
Interest rate in the UK: 2.10%
What is the arbitrage profit in in one year if you start by borrowing 1,000,000?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
