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The spot rate between the U.K. and the U.S. is .7574/$, while the one-year forward rate is .7532/$. The risk-free rate in the U.K. is
The spot rate between the U.K. and the U.S. is .7574/$, while the one-year forward rate is .7532/$. The risk-free rate in the U.K. is 4.43 percent and risk-free rate in the United States is 2.66 percent. How much in profit can you earn on $7,000 utilizing covered interest arbitrage? Multiple Choice $144.08 $164.66 $83.36 $131.73 Multiple Choice $144.08 $164.66 $83.36 $131.73 $93.78
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