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Question 6 QUESTION 6 Using covered interest arbitrage, what would be the value of an investment of 850,000, given the following information? 1-year interest rate
Question 6
QUESTION 6 Using covered interest arbitrage, what would be the value of an investment of 850,000, given the following information? 1-year interest rate in the UK: 2.0% 1-year interest rate in Russia: 10.0% Spot rate: 0.0205 per rouble 1-year forward rate: 0.0196 per rouble
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