US interest rates are currently 5.9% on one year T-bills. Assume that the American dollar is quoted

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US interest rates are currently 5.9% on one year T-bills. Assume that the American dollar is quoted at 1 USD for $1.37 CDN and Canadian one year T-bills are 4.85%. If the forward spot rate is $1.42 what would the arbitrage be in Canadian dollar terms?

Posted Date: Jul 11, 2024 09:19 AM

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US interest rates are currently 5.9% on one year T-bills. Assume that the American dollar is quoted

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