Intro

You have $11,000 to invest and observe the following interest rates and exchange rates:

Annual interest rates	Deposit rate	Loan rate
Dollar	4.8%	5.5%
Ruble	6.1%	7%
Exchange rates	Bid	Ask
Ruble spot	$0.018	$0.019
Ruble 1-year forward	$0.02	$0.021

Part 1

How many rubles will you get from converting your dollars?

Part 2

How many rubles will you have after depositing them at a Russian bank for one year?

Part 3

How many dollars will you get from selling your rubles at the one year forward rate?

Part 4

What is your risk-free rate of return (yield) from exploiting the higher interest rate in Russia?