Question
Suppose you observe the following exchange rates and interest rates for the USD and THB: Bid Ask USD/THB 30.01 30.31 USD/THB F,360 ? ? Trader
Suppose you observe the following exchange rates and interest rates for the USD and THB:
| Bid | Ask | |
| USD/THB | 30.01 | 30.31 |
| USD/THB F,360 | ? | ? |
| Trader lends at | Trader borrows at | |
| I USD | 1.55% | 1.75% |
| I THB | 0.60% | 0.85% |
Which answer is closest to the minimum forward ask (USD/THBAF,360) that prevents covered interest rate arbitrage?
25.29
29.67
30.13
30.97
29.97
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Corporate Financial Distress A Study Of The Italian Manufacturing Industry
Authors: Matteo Pozzoli , Francesco Paolone
1st Edition
3319673548,3319673556
