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QUESTION 1 USE the following information to answer the next two questions. CIA Questions EUR 3% USD 2% 1.30 1.2800 Interest Rate EUR/USD EUR/USD Spot
QUESTION 1 USE the following information to answer the next two questions. CIA Questions EUR 3% USD 2% 1.30 1.2800 Interest Rate EUR/USD EUR/USD Spot Forward $ $ Assume that you can borrow and lend (deposit) $1,000,000 each currency Find the CIAAP (CIA Arbitrage Profit). Answer the profit with the borrowing currency. If you borrow in Euro and payoff later, then the answer must be in Euro. If you borrowed the USD, then the answer must be in USD. Answer in two decimals. QUESTION 2 What is the CIA Return? Answer in percent. For example, if the answer is 3.3333%, then write 3.33. Click Save and Submit to save and submit. Click Save All Answers to save all answers
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