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Qns: Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1000000)
Qns: Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1000000)
Assume the following information: Quoted Price Spot rate of Canadian dollar $0.80 90day forward rate of Canadian dollar $0.79 90day Canadian interest rate 4% 90day US. interest rate 2.5% Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume thp investor invests $1,000,000.)Step by Step Solution
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