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please explain how to solve and make sure the answers match the result below the questions 00 John can invest $4 million, or the foreign
please explain how to solve and make sure the answers match the result below the questions 
00 John can invest $4 million, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Canada. The the following quotes are provided S 1.2785 CAD/USD F (4 months) 1.2975 CAD/USD USD 4-month interest rate 2.8 % CAD 4-month interest rate 4.5 % Calculate the covered interest arbitrage (CIA) profit/Loss (2nd alternative- 1st alternative)? Correct Answer: 36,786.13 05 our Step by Step Solution
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Investments An Introduction
Authors: Herbert B. Mayo
12th edition
1305638417, 978-1337430937, 1337430935, 978-1305638419
