Question
Covered interest arbitrage: Following data are available in the market. Interest rates for six months (annualized interest rates): USD 1 % (for borrowing) INR 5%
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Covered interest arbitrage: Following data are available in the market.
Interest rates for six months (annualized interest rates): USD 1 % (for borrowing) INR 5% - (for investment)
Spot USD/INR: 73.10/11 6 months FWD 74.25/74.30
Find out whether you have arbitrage opportunity?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
13th Global Edition
1292409487, 978-1292409481
