International Financial Management Class

4) The spot rate between the UK and the US is 0.7594 Pounds/USD while the six forward rate is 0.73 pounds per USD. The risk free rate in the UK is \4.51 (annualized) and risk free rate in the US is \2.7 (annualized). How much in profit can you earn on \\( \\$ 9000000 \\) utilizing covered interest arbitrage? a. 152,403.49 USD b. 450,570 USD c. \\( \\$ 275,748.34 \\) USD d. None of the above (given answer)