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Consider the 2Y zero-rates in Poland and USA are 3% pa. and 1,5% pa. respectively. The spot exchange currently quoted is 3PLN/USD. The FX rate
Consider the 2Y zero-rates in Poland and USA are 3\% pa. and 1,5\% pa. respectively. The spot exchange currently quoted is 3PLN/USD. The FX rate under 2Y forward contract for a delivery of 1000 USD is 3,05 PLN/USD. Suppose you are a financial speculator. What loan should you take now in order to realize a profit on one forward contract under arbitrage strategy? i. 985,11 USD ii. 957,46 USD iii. None of the answers provided. iv. 1.001,53 USD v. 2.911,34 PLN vi. 2.872,38 PLN vii. 970,45 USD viii. 986,62 USD
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
