Question
Given the following information, show how you can arbitrage and compute your profit, if you can borrow 200 million dollars or euros equivalent for three
Given the following information, show how you can arbitrage and compute your profit, if you can borrow 200 million dollars or euros equivalent for three months. Show your profit in both dollars and euros
Spot rate ($/) 1.255
3-month forward rate
($/) 1.213
3-month U.S. dollar interest rate 2.0%
3-month euro interest rate 1.6%
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The Commercial Real Estate Investors Handbook
Authors: Steven D. Fisher
1st Edition
1601380372, 978-1601380371
