Question
Covered Interest Arbitrage spot rate of Mexican Peso $.100 180 day rate of Mexican Peso $.099 180 day Mexican interest rate 6% 180 day U.S.
Covered Interest Arbitrage
spot rate of Mexican Peso $.100
180 day rate of Mexican Peso $.099
180 day Mexican interest rate 6%
180 day U.S. interest rate 4%
Given this information, is covered interest arbitrage worthwhile for Mexican investors who have 1,000,000 pesos to invest? Explain and SHOW WORK:
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Finance For IT Decision Makers
Authors: Michael Blackstaff
3rd Edition
1780171226, 978-1780171227
