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Show calculation 8) Assume the following information: Current spot rate of New Zealand dollar One-year forward rate of the New Zealand dollar Annual interest rate

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8) Assume the following information: Current spot rate of New Zealand dollar One-year forward rate of the New Zealand dollar Annual interest rate on New Zealand dollars Annual interest rate on U.S. dollars $645 -$.652 3.1% " 3.6% a) Given the information in this question, the additional profit from covered interest arbitrage by U.S investors with $100,000 to invest is equal to b) Would Covered interest Arbitrage work for a New Zealand investor with 100,000 NZD to invest

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