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What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage? (3 points) Assume the following information: You have $1,000,000

What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage? (3 points) Assume the following information: You have $1,000,000 to invest Current spot rate of pound = $1.30 90?day forward rate of pound = $1.28 3?month deposit rate in U.S. = 3% 3?month deposit rate in Great Britain = 4% Given this information, does the interest rate parity hold? Why? (1 point) If you use covered interest arbitrage for a 90?day investment, what will be the amount of U.S. dollars you will have after 90 days? (2 points)

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