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Question: 1 a. Briefly explain financing opportunities in Bangladesh considering political and market imperfection. b. Spot rate of Euro = $1.21 150-day forward rate of
Question: 1 a. Briefly explain financing opportunities in Bangladesh considering political and market imperfection. b. Spot rate of Euro = $1.21 150-day forward rate of Euro = $ 1.19 Country US interest rate Europe interest rate Lending Rate 4.50% 5.70% Borrowing Rate 5.50% 6.60% Given this information, assess covered interest arbitrage is possible for which investor? And what would be the profit and yield to use the CIA strategy for potential investors and what market forces would occur to eliminate any further possibilities of covered interest arbitrage? Assume investors have ($1150,000 or 950,000) to use. c. Briefly explain influence of financial factors in exchange rates movements in Bangladesh last ten years viewpoints with graphical presentation
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