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given th e following information. You have $50,000 and 40,000 and the ability to additionally borrow S100,000 and/or 80,000. In other words, you are an

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given th e following information. You have $50,000 and 40,000 and the ability to additionally borrow S100,000 and/or 80,000. In other words, you are an British investor. (20 points) American investor and a Ask Quote Bid Quote $1.635 S1.64 1.645 Borrow Rate Spot rate for the British pound 90-day Forward rate for the British pound $1.64 Deposit RateBo Annual Interest Rate in the U.S Annual Interest Rate in the U.K 11% 11.85% 5% 10.2% Determine if covered interest arbitrage is possible. Calculate your total gain or loss if you act rationally. Your answer can be in percentages (yields) or in dollars and pounds

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