Chapter 6 Exchange Rate Interest Rate APR So($/) $1.45 = 1.00 is 4% F360($/) $1.48 = 1.00 ie 3% Please note that your answers should include currency symbols ($, ). (a) Find the 1-year forward exchange rate in $ per that satisfies IRP (b) How would you carry out covered interest arbitrage? Show all the steps and determine the arbitrage profit. 00.13 = 0 albero di om b re 00.19 = 22.1 xs loge in SAT 200.19 = 02.123 igen diw 02a co c o o no momento How to c io' 0.57 3.0 on ero costansiq sdn on o stati bos sule in odsotno s (c) Explain how IRP will be restored as a result of covered arbitrage activities. og t inovo land Strogo na la