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hello chegg helper. these 4 questions go togther. please help answer. Question 33 Given the information: Interest rate in US (Rh) Interest rate in UK
hello chegg helper. these 4 questions go togther. please help answer. Question 33 Given the information: Interest rate in US (Rh) Interest rate in UK (Rt): The current spot rate for GBP (SR) $1.50 | 1-year forward rate for GBP (FR): $1.52 What is your covered rate of return from US (Rch)? 6% 4% 7.4133% 5.3867% 2.6316% 4.6053% Question 34 Given the information: Interest rate in US (Rh): Interest rate in UK (Rf): The current spot rate for GBP (SR): 1-year forward rate for GBP (FR): 6% 4% $1.50 $1.52 What is your covered rate of return from UK (Rcf)? 7.4133% 2.6316% 5.3867% 4.6053% Question 35 Given the information: Interest rate in US (Rh): Interest rate in UK (RE: The current spot rate for GBP (SR) 1-year forward rate for GBP (FR): 6% 4% $1.50 $1.52 Suppose your lines of credit are USD 15,000,000 in the US and GBP 10,000,000 in UK. If you set up a covered interest rate arbitrage, your covered interest arbitrage profit will be: USD 200,000 GBP 300,000 USD 92,000 GBP 60.526 D Question 36 Given the information: 6% Interest rate in US (Rh): Interest rate in UK (Rf): The current spot rate for GBP (SR) $1.50 1-year forward rate for GBP (FR): S1.52 Trading based on covered interest arbitrage will cause Downward pressure on the GBP's SR. Downward pressure on Rf. Upward pressure on Rh. Downward pressure on the GBP's FR
hello chegg helper. these 4 questions go togther. please help answer.
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