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Question 9 1 pts You have a credit line of $10,000,000 in the US and CD 12,500,000 in Canada, and you can borrow and lend

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Question 9 1 pts You have a credit line of $10,000,000 in the US and CD 12,500,000 in Canada, and you can borrow and lend at the prevailing rates of interest in these two countries. Current spot rate of CD - $0.800. Expected spot rate for CD. one year from now $0.830, Interest rate is 2.00% in the US and 5.00% in Canada. If the current 1-year forward rate for CD - $0.812. the covered interest rate arbitrage trades that it will generate will cause Downward pressure on the CD's spot rate. Uoward pressure on the US Interest rate Downward pressure on the CD's forward rate Downward pressure on the Canadian interest rate Question 10 1 pts You have a credit line of $10.000.000 in the US and CD 12 500,000 in Canada and you can borrow and lend at the prevailing rates of interest in these two countries. Current soot rate of CD50.800 Expected spot rate for CD. one year from now - $0.8.30. Interest rate is 7.00w in the US and 5.00% in Canada. If the 1.vr current forward rate for CD - $0.825, your covered interest arbitrage profit is: 5128 125 55343 541775

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