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Spot rate 1$= Rs 64 Interest rate prevailing in India = 12% Interest rate prevailing in US = 7% Fair Forward Rate (FFR) (1 Year):
Spot rate 1$= Rs 64
Interest rate prevailing in India = 12%
Interest rate prevailing in US = 7%
Fair Forward Rate (FFR) (1 Year): $1 = Rs 6.99
Actual Forward Rate (AFR) (1 Year): $ 1 =Rs 5.90
Determine the possible Arbitrage Gain
A. | 11670 | |
B. | 34523 | |
C. | 12567 | |
D. | 12876 |
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