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Covered Interest Arbitrage in Both Directions. The oneyear interest rate in New Zealand is 4 percent. The oneyear U.S. interest rate is 6 percent. The
- Covered Interest Arbitrage in Both Directions. The oneyear interest rate in New Zealand is 4 percent. The oneyear U.S. interest rate is 6 percent. The spot rate of the New Zealand dollar (NZ$) is $.702. The one-year forward rate of the New Zealand dollar is $.709.
- Is covered interest arbitrage feasible for U.S. investors? Suppose a US customer has $100,000, if he deposits the $100,000 in World National bank he will have $106,000 at the end of one year. If he uses covered interest arbitrage, how many US dollars will he have at the end of one year?
- Is it feasible for New Zealand investors? Suppose a New Zealand customer has NZ$100,000, if he deposits the NZ$100,000 in World National bank he will have NZ$104,000 at the end of one year. If he uses covered interest arbitrage, how many NZ dollars will he have at the end of one year?
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Crypto Grenade A Beginners Guide To Technical Analysis And Understanding Crypto
Authors: Leland Schumacher
1st Edition
1950961702, 978-1950961702
