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The following data is from 2 0 2 1 . Make sure that for all Exchange rates and Forward rates you USE 4 DECIMAL PLACES.
The following data is from Make sure that for all Exchange rates and Forward rates you USE DECIMAL PLACES. All other answers you may round to decimal places.
You are considering a Covered Interest Arbitrage Carry Trade between the US and Mexico over the next days. The following data apply all borrowing & lending rates are annualized Note: Use to convert to day rates.
US: Lending rate Borrowing rate
Mexico: Lending rate Borrowing rate
Spot rate of Mexican Peso MXN USD per MXN
day Forward rate quote USD per MXN
Assume you have USD in capital.
Part : You will borrow Blank Calculate the answer by read surrounding text.
units of currency in the country from which you will borrow from over the next days.
Part : You will lend Blank Calculate the answer by read surrounding text.
units of currency in the country in which you will lend in for the next days.
Part : You will be paid Blank Calculate the answer by read surrounding text.
Mexican Pesos in days.
Part : The number of Mexican Pesos from the previous Part will convert to Blank Calculate the answer by read surrounding text.
USD.
Part : In days you will owe Blank Calculate the answer by read surrounding text.
USD.
Part : Your Profit in will be Blank Calculate the answer by read surrounding text.
USD.
Part : Your daypercent Return will be Blank Calculate the answer by read surrounding text.
Part : The Forward rate at which your profit from this trade is zero equals Blank Calculate the answer by read surrounding text.
USD per MXN Your answer should be with DECIMAL PLACES.
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