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This question is related to foreign exchange/international finance. thumbs up for CORRECT answers, please and thanks! Question 2 0.5 pts Questions 2-5 are based on
This question is related to foreign exchange/international finance. thumbs up for CORRECT answers, please and thanks!
Question 2 0.5 pts Questions 2-5 are based on the following information: Suppose that the annual interest rate is 6 percent in the United States and 4 percent in Great Britain, and that the spot exchange rate is $2/f and the forward exchange rate, with 6-month maturity, is $2.3/f. Assume that an arbitrager can borrow up to $10,000 or 5,000. Step 1: Write down the known variables. S(S/) down the number, with no currency units). , (please just write 6-month interest rate: i- (please write down your number in percentage)
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