You has obtained forward contract quotations for the Thai baht to determine whether covered interest arbitrage may be possible. The quoted forward rate is $0.0205 per Thai baht for a 90-day forward contract. . The current spot rate is $0.0208. Ninety-day interest in the U.S. is 2.25 percentage, whereas 90-day interest rates in Thailand are 3.5 percentage (these rates are not annualized). Requirements: a. Determine whether the forward rate is priced appropriately. [1 mark] b. If it is not, determine the profit you could generate by borrowing $500,000 from the a US bank and engaging in a covered interest arbitrage strategy. [4 Marks] B 1 I IEE O US X X EE D *** # X # U Quiz navigation Finish steps Time left 1:43:00