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The Select box options for the first box are: is, is not The select box options for the second box are: is lower than, exceeds
The Select box options for the first box are: is, is not
The select box options for the second box are: is lower than, exceeds
Assume the following information: Quoted Price Spot rate of Mexican peso $0.109 180-day forward rate of Mexican peso $0.105 180-day Mexican interest rate 7% 180-day U.S. interest rate 6% Given this information, is covered interest arbitrage worthwhile for Mexican investors who have pesos to invest? Explain your answer. Do not round intermediate calculations. Round your answer to one decimal place. Covered interest arbitrage -Select- vworthwhile for Mexican investors because Mexican investors would generate a yield of %, which -Select- their domestic yield
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