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b) Assume the following information:- Spot rate of Euro- 90 day forward rate of Euro4 90 day European interest rate- 90 day U.S interest rate-

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b) Assume the following information:- Spot rate of Euro- 90 day forward rate of Euro4 90 day European interest rate- 90 day U.S interest rate- Quoted price 0.80 USD 0.79 USD 4% 2.5% REQUIRED: Given the information above, discuss if covered interest arbitrage worthwhile for an US investor who has US dollars to invest (assume the investor invests $1,000,000). Explain with calculations. [4 marks] Please provide the answer here; you may increase space where necessary

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