Question
The Swedish Krona is quoted at .0313-.0315 US$/Krona spot. 6-month forward contracts are quoted .0311-.0314. 6-month interest rates in the US (for both borrowing and
The Swedish Krona is quoted at .0313-.0315 US$/Krona spot. 6-month forward contracts are quoted .0311-.0314. 6-month interest rates in the US (for both borrowing and investing) are at a 5% annual rate. What 6-month annual interest rate in Sweden for borrowing and investing would allow an arbitrage?
a) 6%
b) 7%
c) 8%
d) All of the above
e) None of the above
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option D is correct All of above Explanation Now you s...
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Multinational Finance Evaluating Opportunities Costs and Risks of Operations
Authors: Kirt C. Butler
5th edition
1118270126, 978-1118285169, 1118285166, 978-1-119-2034, 978-1118270127
