Question
You have $1,000,000 to invest: Current spot rate of pound: $1.30 90-days forward rate of pound $1.28 3 month deposit rate in U.S 3% 3
- You have $1,000,000 to invest:
Current spot rate of pound: $1.30
90-days forward rate of pound $1.28
3 month deposit rate in U.S 3%
3 month deposit rate in U.K 4%
If you covered interest rate arbitrage for a 90 days investment, what will be the amount of U.S dollar you will have after 90 days?
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
