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Assume the interest rates in Singapore is 9.60% and 11.48% in the United States. A US dollar (USD) currently sells for 1.3893 Singapore dollars
Assume the interest rates in Singapore is 9.60% and 11.48% in the United States. A US dollar (USD) currently sells for 1.3893 Singapore dollars (SGD). The one-year forward rate is 1.3199 Singapore dollars per US dollar, while the expected exchange rate in one year is 1.5457 Singapore dollars per US dollar. If you have 763,000 Singapore dollars to execute the covered interest arbitrage, it will be. because it will generate a return of.
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
