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Section B: Problem Solving 1. Assume the following information: (4+3=7) Assume further that you are a US investor and have $100,000 to invest, a) Specify

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Section B: Problem Solving 1. Assume the following information: (4+3=7) Assume further that you are a US investor and have $100,000 to invest, a) Specify each step that needs to be followed for covered interest arbitrage with calculation. b) Do you think covered interest arbitrage will be worthwhile for the US investor, explain why or why not, graphically specify the quadrant in which the steps will take place

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