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Using the forward rates from Barchart, combined with the current interest rates from CNBC Bonds page, evaluate if interest rate parity holds for the GBP/USD
Using the forward rates from Barchart, combined with the current interest rates from CNBC Bonds page, evaluate if interest rate parity holds for the GBP/USD exchange rate predicted for 1 year from now. (Note: you can use bid/ask midpoint for question 3) (a) Show the arbitrage profits available if you have $1,000,000 (b) Compare the Barchart forward price to the CME group futures price. How would you arbitrage this difference? Show the steps you would take and the profits available to a $1,000,000 investment please shownthe detail information for this questions! thanks!
Using the forward rates from Barchart, combined with the current interest rates from CNBC Bonds page, evaluate if interest rate parity holds for the GBP/USD exchange rate predicted for 1 year from now. (Note: you can use bid/ask midpoint for question 3)
(a) Show the arbitrage profits available if you have $1,000,000
(b) Compare the Barchart forward price to the CME group futures price. How would you arbitrage this difference? Show the steps you would take and the profits available to a $1,000,000 investment
please shownthe detail information for this questions! thanks!
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