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If you conduct covered interest arbitrage, what is the arbitrage profit you will have realized after 180 days? You have $900,000 to invest Current spot
If you conduct covered interest arbitrage, what is the arbitrage profit you will have realized after 180 days? You have $900,000 to invest Current spot rate of Australian dollar (A$): 180-day forward rate of the Australian dollar: 180-day interest rate in the U.S: 180-day interest rate in Australia: $0.62 $0.64 3.5% 5.0% $43,984 $31,500 $56,903 $27,548
2.5 pts Question 20 If you conduct covered interest arbitrage, what is the arbitrage profit you will have realized after 180 days? You have $900,000 to invest Current spot rate of Australian dollar (A$): $0.62 180-day forward rate of the Australian dollar: $0.64 180-day interest rate in the U.S.: 3.5% 180-day interest rate in Australia: 5.0% $43,984 $31,500 $56,903 $27,548Step by Step Solution
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