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Using the interest rate parity theory determine the forward rate given the following information: 1 yr KSh. Interest rate is 15%. 1 yr USD interest

Using the interest rate parity theory determine the forward rate given the following information: 1 yr KSh. Interest rate is 15%. 1 yr USD interest rate is 6% the spot rate is $1 = Sh.65.

c) Consider the following information 1 Ksh. = 0.015 Us Dollars 1Tsh = 0.0008 Us Dollars 1KSh = Tsh. 20 Compute the gain from triangular arbitrage from am investor wish 200,000 Us Dollars to invest

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