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Dataset (5) Covered Interest Arbitrage Amount $3,000,000 US Interest rate 796 Mexico interest rate 5% Spot rate Ps20.4500/$ 180-day Forward Rate Ps 20.0015/$ Investment for

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Dataset (5) Covered Interest Arbitrage Amount $3,000,000 US Interest rate 796 Mexico interest rate 5% Spot rate Ps20.4500/$ 180-day Forward Rate Ps 20.0015/$ Investment for 180 days Question 38 Using data in Dataset (5) find the forward premium (annualized) on Peso in % (Round your answer to 4 decimals.) 4.4847% O 2.2423% 0 -2.2423% 0 -4.4847% Using data in Dataset (5) find the Covered interest arbitrage profit potential in %. Question 40 Using data from Dataset (5) and according to the rule of thumb what currency should you invest in? O Canadian dollar Euro USD OPs

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