Question
The spot rate between Canada and the US is Can$1.2419/$while the one year forward rate is CAN$1.2418/USD.The risk free rate in Canada is 4.45% and
The spot rate between Canada and the US is Can$1.2419/$while the one year forward rate is CAN$1.2418/USD.The risk free rate in Canada is 4.45% and the risk free rate in the US is 2.67%.What is the potential profit from $7500000 in covered interest arbitrage?
a.$136838
b.$130040
c.$134130.83
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
