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Please show all workings, thank you! You have $500,000. Using the following information, compute profit (loss). Bid Ask Deposit rate Loan rate spot $1.12/ $1.13/
Please show all workings, thank you!
- You have $500,000. Using the following information, compute profit (loss).
|
| Bid | Ask |
| Deposit rate | Loan rate |
| spot | $1.12/ | $1.13/ | Interest rate on $ | 6% | 9% |
| 1-year forward | $1.125/ | $1.135/ | Interest rate on | 7.5% | 9.5% |
- -$12,432.42
- $702.43
- $35,121,68
- $54,246.32
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
